Automaker Stellantis has announced the signing of a memorandum of understanding with Canadian armored vehicle manufacturer Roshel for the potential acquisition of its inactive Brampton, Ontario, assembly plant. In response, the union representing Canadian employees at Stellantis has halted contract negotiations due to a deadlock concerning the future of the Brampton facility.
Trevor Longley, the Chairman, President, and CEO of Stellantis Canada, mentioned that the company explored various options for the plant, which has been dormant since 2023. Longley emphasized that Stellantis views Roshel as a viable avenue to revive sustainable operations at the Brampton Assembly, thereby upholding the site’s strategic significance in Canada’s advanced manufacturing sector and preventing prolonged inactivity.
Unifor, the union, is currently evaluating its next course of action and has committed to sharing further developments in the coming days. The existing collective agreement between Stellantis and the union is scheduled to expire on September 20 at 11:59 p.m. Contract discussions 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.
The union had set a deadline of September 11 to reach a new agreement with Stellantis, but negotiations stalled after ten days due to the company’s persistent proposal to close and sell the Brampton plant, impeding the bargaining process. Unifor spokesperson Kathleen O’Keefe expressed concerns about the potential adverse impact of the proposed plant closure and sale on wages, pensions, benefits, as well as Canada’s industrial landscape, particularly in Ontario and the Brampton community.
Roshel’s CEO, Roman Shimonov, assured that laid-off Brampton workers would receive priority consideration for employment at the plant. Shimonov outlined plans to establish a Canadian Centre of Excellence for Defense Manufacturing in Brampton in addition to current automotive production, aiming to reinstate laid-off Unifor workers through various procurement programs and job opportunities.
Brampton Mayor Patrick Brown voiced disappointment over the news of the potential sale, labeling it as another letdown from Stellantis and urging the federal government to ensure accountability for commitments made. Brown stressed the need for transparency from Roshel regarding job creation plans and investment timelines, emphasizing the importance of engaging with Unifor Local 1285 to secure a future for Brampton workers.
Meanwhile, uncertainties loom over Stellantis’ plans for its Windsor assembly plant and Etobicoke casting plant, as Unifor awaits confirmation of forecasted strategies. James Stewart, President of Unifor Local 444, highlighted the union’s priorities in negotiations with Stellantis, including resolving the Brampton plant’s future and securing investments in facilities and workforce expansions. Despite a pause in bargaining, Stewart clarified that the decision is not indefinite, and discussions with the company are ongoing to determine the next steps.