Automaker Stellantis has announced that it has entered into a memorandum of understanding with Canadian armored vehicle manufacturer Roshel regarding a potential transaction involving its dormant Brampton, Ontario, assembly plant.
Concurrently, the union representing Canadian employees at Stellantis has halted contract negotiations, pointing to a deadlock concerning the fate of the Brampton facility.
Trevor Longley, who serves as the chairman, president, and CEO of Stellantis Canada, stated that the company had explored various options for the plant, which has been inactive since 2023.
Longley conveyed in an emailed statement, “Stellantis views Roshel as a viable avenue to reviving sustainable operations at the Brampton Assembly, thereby upholding the site’s pivotal position in Canada’s advanced manufacturing sector and averting an extended period of dormancy.”
Unifor is now deliberating on the next course of action and has promised to share more details in the coming days.
Vito Beato, President of Unifor Local 1285, expressed, “No external entity should interfere in our negotiations, particularly in matters concerning the future of our assembly plant.”
The current collective agreement between Stellantis and the union is scheduled to expire on September 20 at 11:59 p.m.
While discussions commenced on September 1 in Toronto after Unifor had ratified new collective agreements with Ford Motor Co. and General Motors in Canada earlier during the summer as part of its standardized bargaining process with each of the Detroit Three.
Union representatives had set a September 11 deadline to reach a new agreement with Stellantis, but as of Friday, the talks had collapsed after ten days.
Kathleen O’Keefe, a spokesperson for Unifor, remarked, “The persistent proposal by the company to shut down and divest the Brampton plant has hampered the negotiation process.”
O’Keefe added, “The suggested closure and sale of the facility pose a threat to the salaries, pensions, and other benefits of Unifor members. It also inflicts a severe blow on Canada’s industrial sector, particularly in Ontario and the Brampton community.”
In a statement released on Friday, Roman Shimonov, CEO of Roshel, pledged that the laid-off personnel in Brampton would receive first priority for positions at the plant.
Shimonov outlined, “Roshel aims to establish a Canadian Center of Excellence for Defense Manufacturing in Brampton, alongside its existing automotive production.”
He further stated, “We are prepared to furnish commitment letters prioritizing laid-off Unifor workers and reintegrating them into the workforce as early as 2026 through the federal government’s Light Utility Vehicles procurement program and other automotive and defense prospects.”
Shimonov also expressed the company’s resolve to finalize discussions with Stellantis and execute its strategies to introduce over 2000 jobs, along with new sovereign capabilities like the production of ballistic steel, to Canada and the Brampton facility.
Brampton Mayor Patrick Brown voiced his disappointment at the news of the potential sale, emphasizing the prolonged uncertainty faced by workers for nearly three years.
Brown criticized Stellantis for what he termed as “yet another promise broken,” asserting that if the company indeed abandons Brampton, it would betray the workers, their families, and Canadian taxpayers.
He insisted, “Stellantis should not be permitted to accept federal funds and forsake Brampton and Canada.”
Brown underscored his intention to urge the federal government to hold Stellantis accountable for its commitments and called for transparency from Roshel regarding job numbers and investment timelines, urging the company to engage with Unifor Local 1285.
Unifor highlighted that aside from the job uncertainty in Brampton, Stellantis had not confirmed its planned actions for the Windsor assembly plant and Etobicoke casting plant.
The union reiterated its stance that no tentative settlement would be reached without resolving the situation for Local 1285 members at Brampton and conveyed this stance to both the company and government officials.
Stellantis declined to provide further comments “out of respect for the collective bargaining process with Unifor,” according to Longley.
James Stewart, President of Unifor Local 444 (Windsor Assembly), stated in a video message on Facebook that the union had three primary objectives in bargaining with Stellantis but none had been met.
Stewart disclosed that the union and the company had set a mutual deadline of September 11, when the union was informed of the plan to sell the Brampton plant, leading to the decision to pause negotiations, although this pause is not indefinite.
He mentioned, “We have hit a deadlock with the company. The senior leadership of Stellantis has made it clear that their intention is to exit the Brampton assembly plant and sell it to a third party.”
Stewart indicated that the union is exploring options, will engage with the company, and then strategize next steps. The union has not
