Automaker Stellantis has announced the signing of a memorandum of understanding with Canadian armored vehicle manufacturer Roshel concerning a potential acquisition of its dormant Brampton, Ontario, assembly plant. The Canadian workers’ union at Stellantis has temporarily 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 inactive since 2023.
Longley expressed that Stellantis views Roshel as a viable avenue to revive sustainable operations at the Brampton Assembly, maintaining its strategic significance in Canada’s advanced manufacturing sector and averting prolonged inactivity. Unifor is presently evaluating their next course of action and will provide additional updates soon.
The current labor agreement between Stellantis and the union is scheduled to expire on September 20 at 11:59 p.m. Negotiations commenced on September 1 in Toronto following Unifor’s successful ratification of new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer as part of their standard bargaining process with the Detroit Three automakers.
The union had set a September 11 deadline to reach a new agreement with Stellantis but announced on Friday that talks collapsed after ten days. Unifor spokesperson Kathleen O’Keefe emphasized that the company’s persistent proposal to close and sell the Brampton plant has obstructed the bargaining process, posing threats to wages, pensions, and benefits of Unifor members. The potential closure and sale could also have adverse effects on the Canadian industrial sector, particularly in Ontario and the Brampton community.
Roshel’s CEO, Roman Shimonov, disclosed in a statement that the laid-off workers at the Brampton plant would be given priority consideration for employment opportunities at the facility. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defense Manufacturing in Brampton alongside current automotive production. The company aims to offer job opportunities to the laid-off Unifor workers through various programs, including the federal government’s Light Utility Vehicles procurement program.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, citing the prolonged uncertainty faced by workers. He criticized Stellantis for what he perceived as broken commitments and urged the federal government to hold the company accountable for its promises. Brown also emphasized the importance of Roshel providing clarity on job creation and investment timelines while engaging with Unifor Local 1285.
Unifor highlighted the lack of confirmed plans for the Windsor assembly plant and Etobicoke casting plant, underscoring the union’s stance that resolving issues at the Brampton plant is crucial for any tentative settlement. Stellantis refrained from further comments to respect the ongoing collective bargaining process with Unifor.
In a video statement, James Stewart, President of Unifor Local 444, outlined the union’s priorities in bargaining with Stellantis, focusing on resolving the Brampton plant’s future, securing investments in facilities, and maintaining bargaining patterns. Stewart revealed an impasse between the union and Stellantis management regarding the Brampton plant’s fate, leading to a pause in negotiations. The union is exploring options, planning discussions with the company, and determining future steps without setting a definitive deadline.