Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle maker Roshel regarding a possible transaction involving its dormant Brampton, Ont., assembly plant.
At the same time, the labor union representing Canadian Stellantis workers has halted contract negotiations due to a deadlock over the fate of the Brampton facility.
Trevor Longley, Stellantis Canada’s Chairman, President, and CEO, stated that the company explored various options for the plant, which has been inactive since 2023.
Longley emphasized that Stellantis views Roshel as a viable avenue to revive sustainable operations at the Brampton Assembly plant, maintaining its strategic importance in Canada’s advanced manufacturing sector and averting a prolonged period of inactivity.
Unifor is currently deliberating on its next course of action and intends to provide additional information shortly.
Unifor Local 1285 President Vito Beato expressed concerns about external involvement in bargaining discussions, particularly regarding the plant’s future.
The current collective agreement between Stellantis and the union is due to expire on September 20 at 11:59 p.m. Talks commenced on September 1 in Toronto following Unifor’s 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 negotiations collapsed after ten days due to the company’s persisting proposal to close and sell the Brampton plant, as mentioned by Unifor spokesperson Kathleen O’Keefe.
Roshel’s CEO, Roman Shimonov, assured that Brampton’s laid-off workers would receive priority consideration for employment at the plant. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton alongside its existing automotive production.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, labeling it as another broken commitment from Stellantis and pledging to hold the company accountable.
Unifor highlighted the uncertainty surrounding jobs at Stellantis’ Windsor assembly and Etobicoke casting plants, stressing the importance of resolving issues at the Brampton facility.
James Stewart, President of Unifor Local 444, emphasized the union’s priorities in negotiations with Stellantis, stating that a resolution for the Brampton plant’s future, facility investments, and bargaining pattern alignment were key concerns.
Stewart disclosed that Stellantis intends to exit the Brampton plant and sell it to a third party, prompting the union to pause bargaining temporarily. Discussions are ongoing to determine the next steps in the negotiation process.
The union has not set a definitive deadline for resuming talks with Stellantis.
