Automaker Stellantis has announced a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding the potential sale of its inactive Brampton, Ontario, assembly plant. Meanwhile, the union representing Canadian Stellantis workers has halted contract negotiations due to a stalemate over the future of the Brampton facility.
Trevor Longley, chairman, president, and CEO of Stellantis Canada, 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, maintaining its vital role in Canada’s advanced manufacturing sector and averting a prolonged period of inactivity.
Unifor is currently assessing next steps and plans to provide further updates in the coming days. Unifor Local 1285 President, Vito Beato, expressed concerns about the involvement of a third party in the bargaining process and discussions concerning the assembly plant’s future.
The existing collective agreement between Stellantis and the union is scheduled to expire on September 20th at 11:59 p.m. Negotiations commenced on September 1st in Toronto following Unifor’s successful ratification of new collective agreements with Ford Motor Co. and General Motors in Canada as part of its pattern bargaining strategy with the Detroit Three.
The union had set a deadline of September 11th to reach a new agreement with Stellantis. However, talks broke down after ten days due to the company’s persistent proposal to close and sell the Brampton plant, hampering the negotiation process, as stated by Unifor spokesperson Kathleen O’Keefe.
Roshel CEO Roman Shimonov pledged that laid-off Brampton workers would receive priority consideration for jobs at the plant, aiming to establish a Canadian Center of Excellence for Defense Manufacturing in Brampton alongside its existing automotive production.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, highlighting the prolonged uncertainty faced by workers and the community. Brown urged the federal government to hold Stellantis accountable for its commitments and emphasized the need for clarity from Roshel regarding job opportunities and investment timelines.
Unifor raised concerns about the lack of confirmed plans for the Windsor assembly plant and Etobicoke casting plant, stressing the importance of resolving issues at the Brampton facility before reaching a tentative settlement. Stellantis refrained from further comments to respect the ongoing collective bargaining process with Unifor.