Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding a potential transaction involving its inactive Brampton, Ont., assembly plant. The Canadian workers’ union at Stellantis has halted contract negotiations due to a deadlock over the future of the Brampton facility. Trevor Longley, the Chairman, President, and CEO of Stellantis Canada, stated that the company explored various options for the plant, which has been non-operational since 2023. Longley emphasized that Stellantis views Roshel as a viable avenue to reviving sustainable operations at the Brampton Assembly, safeguarding its key role in Canada’s advanced manufacturing sector and averting a prolonged period of inactivity. Unifor is currently deliberating on its next course of action and plans to provide additional updates shortly.
The existing collective agreement between the automaker and the union is scheduled to expire on September 20 at 11:59 p.m. Discussions commenced on September 1 in Toronto after Unifor successfully endorsed new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer, following its established pattern bargaining process with the Detroit Three automakers.
The union had set a deadline of September 11 to reach a new agreement with Stellantis but announced on Friday that negotiations broke down after ten days. Unifor spokesperson Kathleen O’Keefe stated that the company’s persistent proposal to close and sell the Brampton plant has impeded the bargaining process, posing a threat to the wages, pensions, and benefits of Unifor members, and negatively impacting Canada’s industrial sector, particularly in Ontario and the Brampton community. She emphasized the irreplaceable economic significance of automotive assembly in Canada, encompassing the extensive supply chain, regional economic activity, and high-quality union jobs linked to the sector.
Over 2,000 employees were laid off from the Brampton plant when operations ceased in 2023. Last month, the union was informed of Stellantis’ contemplation of shutting down and selling the plant, initially intended for Jeep production but later paused, leading to the indefinite idling of the facility. Roshel’s CEO, Roman Shimonov, assured that the laid-off workers in Brampton would receive priority consideration for employment at the plant, outlining plans to establish a Canadian Center of Excellence for Defense Manufacturing in Brampton alongside its current automotive production. Shimonov expressed readiness to offer commitment letters to the laid-off Unifor workers and potentially reinstate them as early as 2026 through government procurement programs and other automotive and defense opportunities.
Brampton Mayor Patrick Brown expressed disappointment over the news of the potential sale, citing the prolonged uncertainty faced by workers over the past three years. He criticized Stellantis for what he perceived as a breach of commitments and called for accountability from the federal government. Brown urged Roshel to provide specifics regarding job offerings and investment timelines, emphasizing the importance of engaging with Unifor Local 1285 for the benefit of Brampton workers.
Unifor highlighted the absence of confirmed plans for Stellantis’ Windsor assembly plant and Etobicoke casting plant, stressing the need for a resolution favorable to Local 1285 members at Brampton before reaching any tentative settlements. Stellantis refrained from further comments to respect the ongoing collective bargaining process with Unifor.
James Stewart, president of Unifor Local 444 (Windsor Assembly), addressed the union’s priorities in negotiations with Stellantis, which were not met, leading to a mutual deadline on September 11. Stewart revealed that the company’s intention to sell the Brampton plant prompted the union to pause negotiations, clarifying that the pause is not indefinite. Discussions are ongoing within the union to determine the next course of action following the impasse with Stellantis management.