Automaker Stellantis has announced the signing of a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding the potential sale of its idle Brampton, Ontario, assembly plant. The Canadian arm of Stellantis is currently at a standstill in contract discussions due to uncertainties surrounding the future of the Brampton facility.
Trevor Longley, the Chairman, President, and CEO of Stellantis Canada, expressed that the company has explored various options for the Brampton plant, which has been dormant since 2023. Longley highlighted Roshel as a viable solution to rejuvenate operations at the Brampton Assembly plant, emphasizing the preservation of its strategic significance in Canada’s advanced manufacturing sector.
Unifor, the union representing Canadian Stellantis workers, has temporarily halted contract negotiations, citing the interference of a potential sale in the bargaining process. Unifor’s President, Vito Beato, emphasized the union’s objection to external involvement in discussions regarding the future of the assembly plant.
The current collective agreement between Stellantis and Unifor is scheduled to expire on September 20. Talks between the two parties commenced in Toronto on September 1 following Unifor’s successful negotiation of new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the year.
Unifor set a deadline of September 11 to reach a new agreement with Stellantis but announced that discussions broke down after ten days due to the company’s persistent proposal to close and sell the Brampton plant. Unifor spokesperson Kathleen O’Keefe expressed concerns over the potential closure and sale, highlighting the adverse impact on workers’ wages, pensions, and benefits, as well as the broader industrial sector in Canada.
Roshel’s CEO, Roman Shimonov, assured that laid-off workers from the Brampton plant would receive priority consideration for employment opportunities at the facility under Roshel’s plans to establish a Canadian Center of Excellence for Defense Manufacturing. Shimonov outlined intentions to create over 2,000 jobs and introduce new capabilities to the Brampton facility.
Brampton Mayor Patrick Brown expressed disappointment at the news of the potential sale, emphasizing the prolonged uncertainty faced by workers and the community. Brown called on the federal government to hold Stellantis accountable for its commitments and urged transparency from Roshel regarding job creation and investment timelines.
Amidst uncertainties surrounding the Brampton plant, Unifor highlighted the lack of confirmed plans for Stellantis’ Windsor assembly plant and Etobicoke casting plant. The union reiterated its stance on securing a resolution for Local 1285 members at Brampton before finalizing any tentative settlement.
Unifor emphasized that the pause in bargaining is not indefinite, with plans to engage in further discussions with Stellantis to address key priorities. The union remains committed to protecting the interests of its members and ensuring a sustainable future for automotive manufacturing in Canada.