Automaker Stellantis has announced that it has reached a preliminary agreement with Canadian armored vehicle manufacturer Roshel for a potential acquisition of its dormant assembly plant in Brampton, Ontario.
In response, the union representing Canadian Stellantis workers has halted contract negotiations due to a deadlock concerning the fate of the Brampton facility.
Trevor Longley, the chairman, president, and CEO of Stellantis Canada, explained that the company explored various options for the plant, which has been inactive since 2023.
Longley emphasized that Stellantis views Roshel as a viable solution to reviving operations at the Brampton Assembly plant, ensuring its continued significance in Canada’s advanced manufacturing landscape and preventing prolonged inactivity.
Unifor is currently assessing its next steps and plans to provide further updates soon.
Unifor Local 1285 President Vito Beato expressed concerns over third-party involvement in discussions regarding the assembly plant’s future, stressing that it should not impact ongoing negotiations.
The existing labor agreement between Stellantis and the union is scheduled to expire on September 20, with talks commencing on September 1 in Toronto following successful negotiations with Ford Motor Co. and General Motors in Canada earlier in the summer.
The union had set a deadline of September 11 to reach a new agreement with Stellantis, but discussions broke down after ten days due to the company’s proposal to close and sell the Brampton plant, impeding the negotiations.
Kathleen O’Keefe, a Unifor spokesperson, highlighted the potential negative impact of the plant’s closure and sale on workers’ wages, benefits, and the broader industrial sector in Canada.
Roshel’s CEO, Roman Shimonov, assured that former Brampton plant workers would receive priority for job opportunities at the plant, emphasizing plans to establish a Defense Manufacturing Center of Excellence in Brampton in addition to its automotive production.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, calling it a betrayal of workers and taxpayers if Stellantis decides to divest from the region after receiving substantial public support.
The mayor urged the federal government to hold Stellantis accountable for its commitments and emphasized the need for clarity on Roshel’s job creation plans and investment timeline.
The union also highlighted uncertainties surrounding Stellantis’ plans for its Windsor assembly plant and Etobicoke casting plant, emphasizing the need for a resolution to the Brampton situation before finalizing any agreements.
In a video statement, James Stewart, president of Unifor Local 444, outlined the union’s priorities in negotiations with Stellantis, emphasizing the unresolved issues regarding the Brampton plant’s future and investment in company facilities.
Stewart noted that while bargaining is currently paused, it is not indefinite, and discussions with the company are ongoing to determine the next course of action.
The union has refrained from setting a strict deadline as they work towards finding a resolution with Stellantis.