Unifor national president Lana Payne said Stellantis is 100 per cent serious about selling its idled Brampton, Ont., assembly plant to Canadian armoured vehicle maker Roshel, according to statements made during a news conference in Toronto on Thursday. The union is urging the federal government to intervene and block the potential transaction while collective bargaining negotiations remain ahead of a Sept. 20 contract expiration.
Unifor Rejects Brampton Plant Sale and Demands Retooling
The union representing Canadian auto workers opposes the proposed sale of the Brampton facility. According to Unifor, Stellantis announced an MOU with Roshel last Friday. The facility has been idle since 2023, when operations were paused to retool for Jeep Compass production. Stellantis later moved production of that vehicle model to the United States.
“Stellantis is 100 per cent serious about exiting Brampton. Currently that is their only plan. Everyone needs to understand this, especially our governments,” Payne said during the news conference. According to Unifor, the best course of action is for the automaker to commence retooling for the promised Jeep Compass model rather than selling the site to a non-automaker.
Stellantis Cites Unpredictable Trade Policies and Market Pressures
In a letter shared with CBC News by a worker, Stellantis stated that it remains firmly committed to Canada through its operations in Windsor and Etobicoke. However, the automaker evaluated a range of options for Brampton and concluded that market and trade conditions impacted the original business case. According to the company, the automotive industry faces unpredictable trade policies, challenging regulatory requirements, and affordability pressures.
Roshel CEO Roman Shimonov issued a statement indicating the company has an ambitious plan to bring over 2,000 jobs and the production of ballistic steel to the facility.
Federal Intervention and Trade War Pressures
Industry Minister Mélanie Joly told reporters that when it comes to any potential sale of the plant, the federal government will ensure Canadian workers are protected. According to Joly, Ottawa wants a new model from Stellantis at the Brampton plant, and if the automaker fails to deliver, the government will demand its money back.
Prime Minister Mark Carney recently announced a matching 25 per cent tariff on vehicles imported from the United States that are not compliant with the Canada-U.S.-Mexico Agreement. According to Automotive News Canada online editor Greg Layson, the ongoing contract talks and plant uncertainty represent a major mess complicated by the trade war and unfulfilled commitments tied to federal and provincial investments.
Did you know? The Brampton assembly plant was slated to receive federal and provincial performance incentives totaling $15 billion as part of broader manufacturing mandates before production plans shifted.
Worker Anxiety and Strike Possibility
Ardis Snow, chairperson at the Brampton plant who has worked there for nearly 38 years, stated that worker anxiety is very high. According to Snow, while employees have collected unemployment and supplemental pay, some have had to dip into rainy-day funds or cash in RSPs.
Payne warned that strike action remains a real possibility as the current collective agreement is set to expire on Sept. 20 at 11:59 p.m. According to Unifor, selling the plant in the middle of a trade war and active collective bargaining is indefensible.
Frequently Asked Questions
Why is the Stellantis Brampton plant idle?
Operations were paused in 2023 to retool the facility for Jeep Compass production. Stellantis later halted that plan and moved production to the United States.
Who is buying the Brampton plant?
Stellantis signed a memorandum of understanding with Canadian armoured vehicle maker Roshel regarding a potential sale, though Unifor is actively urging the federal government to block the transaction.
What is the status of union negotiations?
Unifor and Stellantis are currently engaged in collective bargaining negotiations ahead of their contract expiration on Sept. 20, with Unifor warning that a strike remains a possibility.
How many jobs are tied to the Roshel proposal?
According to Roshel CEO Roman Shimonov, the company’s plan aims to bring over 2,000 jobs and ballistic steel production to the Brampton facility.
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