Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding a potential transaction involving its dormant assembly plant in Brampton, Ontario. This development has led to a pause in contract negotiations by the union representing Canadian workers at Stellantis, citing a deadlock over the future of the Brampton facility.
Trevor Longley, Chairman, President, and CEO of Stellantis Canada, mentioned that the company evaluated various alternatives for the plant, which has been inactive since 2023. Longley expressed in an email statement, “Stellantis believes that Roshel offers a viable solution to revive sustainable operations at Brampton Assembly, maintaining the site’s pivotal role in Canada’s advanced manufacturing sector and averting prolonged inactivity.”
Unifor is currently contemplating their next actions and plans to share additional information in the upcoming days. Unifor Local 1285 President Vito Beato emphasized in a Facebook video to union members, “No external party should interfere in our negotiations, especially concerning the future of our assembly plant.”
The ongoing collective agreement between the automaker and the union is due to expire on September 20 at 11:59 p.m. The negotiations began on September 1 in Toronto following Unifor’s successful ratification of new collective agreements with Ford Motor Co. and General Motors in Canada earlier this summer under the pattern bargaining process with each of the Detroit Three.
The union had set a deadline of September 11 to reach a new agreement with Stellantis but announced on Friday that discussions had broken down after ten days. Unifor spokesperson Kathleen O’Keefe stated, “The company’s persistent proposal to close and sell the Brampton plant has impeded the negotiation process, posing a threat to the wages, pensions, and other benefits of Unifor members.”
Regarding the potential sale, Roshel’s CEO, Roman Shimonov, reassured that the laid-off Brampton workers would receive first consideration for jobs at the plant. Shimonov expressed the company’s intentions to establish a Canadian Centre of Excellence for Defense Manufacturing in Brampton, along with its existing automotive production.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, emphasizing the impact on workers and the community. He vowed to push the federal government to hold Stellantis accountable for its commitments and urged transparency from Roshel regarding job opportunities and investment plans.
Unifor highlighted the uncertainty surrounding jobs at the Windsor assembly plant and Etobicoke casting plant, stressing the importance of resolving issues for Local 1285 members in Brampton before reaching a tentative settlement. Stellantis refrained from providing further comments to respect the ongoing collective bargaining process with Unifor.
In Windsor, James Stewart, President of Unifor Local 444, revealed that the union’s priorities in negotiations with Stellantis were not met, leading to a pause in bargaining. Stewart disclosed that the company intends to exit the Brampton plant and sell it to a third party, prompting discussions within the union on the next course of action.
The union has not set a definitive deadline as they navigate the evolving situation with Stellantis.