Automaker Stellantis has announced that it has reached a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding a potential acquisition of its inactive Brampton, Ontario assembly plant.
Concurrently, the labor union representing Canadian employees at Stellantis has halted contract negotiations due to a deadlock concerning the future status of the Brampton facility.
Trevor Longley, who serves as the Chairman, President, and CEO of Stellantis Canada, disclosed that the company explored various options for the plant, which has been dormant since 2023.
Longley emphasized in a written statement that Stellantis views Roshel as a viable avenue to revive sustainable operations at the Brampton Assembly plant, safeguarding its pivotal role in Canada’s advanced manufacturing industry and averting a prolonged period of inactivity.
Unifor, the union, is currently deliberating on its next course of action and plans to release further information shortly.
Vito Beato, President of Unifor Local 1285, conveyed in a video message to union members that no external party should interfere in the bargaining process, particularly concerning the fate of the assembly plant.
The existing collective agreement between Stellantis and the union is due to expire on September 20 at 11:59 p.m.
Negotiations commenced on September 1 in Toronto following the ratification of new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the year as part of the pattern bargaining strategy with the Detroit Three automakers.
The union had set a deadline of September 11 to finalize a new deal with Stellantis but indicated on Friday that discussions ceased after ten days due to the company’s persistent proposal to close and sell the Brampton plant.
According to Unifor spokesperson Kathleen O’Keefe, the potential closure and sale of the facility jeopardize the salaries, pensions, and other benefits of union members while also posing a significant setback to Canada’s industrial landscape, particularly in Ontario and the Brampton community.
Roshel’s CEO, Roman Shimonov, assured in a statement that the laid-off workers from the Brampton plant would be given priority for employment opportunities at the facility.
Shimonov outlined plans to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton in conjunction with current automotive production activities, offering commitments for prioritized hiring of Unifor workers.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, emphasizing the prolonged uncertainty faced by workers and characterizing the news as a breach of commitments by Stellantis.
Brown vowed to urge the federal government to hold Stellantis accountable for its promises and pushed for transparency from Roshel regarding job creation plans and investment timelines.
Unifor highlighted the absence of confirmed plans for the Windsor assembly plant and Etobicoke casting plant, asserting that no tentative settlement would be reached without addressing the concerns of Local 1285 members at Brampton.
James Stewart, President of Unifor Local 444, revealed that the union’s key priorities in bargaining with Stellantis were not met, leading to a pause in negotiations following the revelation of the plan to sell the Brampton plant.
Stewart affirmed that the union’s decision to pause bargaining was not indefinite, indicating ongoing discussions with the company to determine the next steps without setting a hard deadline.
