The union representing employees at Stellantis has issued a caution to the American automaker regarding Canadian workers as Unifor and the company commenced contract discussions on Tuesday. These negotiations represent the final phase of Unifor’s talks with the Detroit Three automakers. Unifor typically employs pattern bargaining for its negotiations in the automotive sector, establishing terms it aims to replicate with other firms.
Despite successfully finalizing new collective agreements with Ford Motor Co. and General Motors in Canada earlier this year, Unifor’s national president Lana Payne emphasized that the most significant challenge lies ahead. Payne acknowledged the prevailing uncertainties, including tariffs and trade tensions, stating, “We anticipate that this round of negotiations will be our toughest and most demanding yet.”
The parties are striving to reach a new agreement by the September 11 deadline. Unifor’s primary concern revolves around job security following the layoff of over 2,000 workers from Stellantis’ Brampton, Ontario, assembly plant, which has been inactive since 2023.
Last month, the union was informed that Stellantis was contemplating the closure and sale of the plant. Initially intended for Jeep production, the facility’s retooling began in early 2024 but was halted by the company in early 2025. Subsequently, Stellantis announced the relocation of Jeep Compass production to the United States, breaching the existing collective agreement, resulting in the indefinite idling of the plant.
There were suggestions that Stellantis might shut down and divest the plant, although no formal written notice was provided to the union, as required under the current agreement. Payne reiterated that moving Jeep Compass production from the Brampton plant was a misguided decision.
Stellantis emphasized the significance of labor discussions with Unifor for its future, acknowledging the industry’s evolving trade and regulatory landscape. The company highlighted its substantial investments exceeding $8 billion across its Canadian operations since 2022, focusing on enhancing manufacturing capabilities and advancing battery technology in Ontario.
Considering the ongoing U.S. tariffs affecting local automakers, Unifor stressed the critical need for Canada to safeguard its automotive sector presence amid what Payne described as an “existential crisis.” The union emphasized the importance of resisting potential detrimental trade agreements that could jeopardize the Canadian auto industry.
Larry Savage, a labor studies expert at Brock University, noted that Unifor is engaged in a dual-front battle: negotiating with Stellantis to sustain Canadian vehicle production and advocating in Ottawa against trade pacts that could harm the domestic auto sector.
Unifor recently announced overwhelming member support for new contracts with General Motors, with wage increases and three-year collective agreements aligning with the pattern bargaining strategy adopted with Ford.