Stellantis, the automaker, has entered into a memorandum of understanding with Roshel, a Canadian armoured vehicle manufacturer, regarding a potential transaction involving its inactive Brampton, Ontario, assembly plant.
The Canadian workers’ union at Stellantis has halted contract negotiations, attributing the pause to disagreements surrounding the future of the Brampton facility.
Trevor Longley, who serves as the Chairman, President, and CEO of Stellantis Canada, mentioned that the company explored various options for the Brampton plant, which has been inactive since 2023.
According to a statement from Longley, Stellantis views Roshel as a viable path to revive sustainable operations at the Brampton Assembly plant, safeguarding its strategic importance in Canada’s advanced manufacturing landscape and averting a prolonged period of inactivity.
Unifor, the union, is currently evaluating its next actions and plans to release more information soon.
Vito Beato, President of Unifor Local 1285, expressed concerns about third parties interfering in bargaining discussions, particularly regarding the Brampton plant’s future, in a video message to union members.
The existing collective agreement between Stellantis and the union is scheduled to expire at 11:59 p.m. on September 20. Talks commenced on September 1 in Toronto after Unifor successfully concluded new collective agreements with Ford Motor Co. and General Motors in Canada earlier during the summer as part of its coordinated bargaining process with the Detroit Three automakers.
The union set a deadline of September 11 to reach a new agreement with Stellantis, but negotiations stalled after ten days. The union spokesperson, Kathleen O’Keefe, stated that the company’s proposal to close and sell the Brampton plant obstructed the bargaining process, jeopardizing the wages, pensions, and benefits of Unifor members.
Roshel’s CEO, Roman Shimonov, assured that the laid-off Brampton workers would be given priority for jobs at the plant. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton, alongside the existing automotive production, aiming to rehire workers through various programs.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, emphasizing the prolonged uncertainty faced by workers. He urged the federal government to hold Stellantis accountable for its commitments and called for transparency from Roshel regarding job projections and investment timelines.
Unifor highlighted the lack of confirmed plans for jobs at Stellantis’ Windsor assembly plant and Etobicoke casting plant. The union stressed that no tentative settlement would be reached without a suitable resolution for Local 1285 members in Brampton.
James Stewart, president of Unifor Local 444, emphasized the union’s unmet priorities in negotiations with Stellantis, including the Brampton plant’s future, facility investments, and pattern bargaining alignment with Ford Motor Company. Stewart mentioned the union’s decision to pause negotiations following Stellantis’ intention to sell the Brampton plant to a third party but clarified that the pause is not indefinite. Discussions are ongoing to determine the next course of action.
With the situation evolving, the union has not imposed a strict deadline for further decisions.