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. In the meantime, the union representing Canadian employees at Stellantis has paused contract discussions, citing a stalemate concerning the future of the Brampton facility.
Trevor Longley, the chairman, president, and CEO of Stellantis Canada, stated that the company explored various alternatives for the plant, which has been inactive since 2023. Longley expressed in an email that “Stellantis believes that Roshel offers a viable path to reestablish sustainable operations at Brampton Assembly, maintaining the site’s crucial role in Canada’s advanced manufacturing sector and preventing prolonged inactivity.”
Unifor is currently deliberating its next actions and has indicated that it will share more information in the upcoming days. The ongoing collective agreement between the automaker and the union is scheduled to expire at 11:59 p.m. on September 20. Negotiations commenced in Toronto on September 1 following Unifor’s approval of new collective agreements with Ford Motor Co. and General Motors in Canada earlier in the summer as part of its pattern bargaining approach with the Detroit Three automakers.
The union had set a deadline of September 11 to reach a new agreement with Stellantis but revealed on Friday that discussions had broken down after ten days. Unifor spokesperson Kathleen O’Keefe remarked, “The company’s persistent proposal to shut down and sell the Brampton plant has impeded the bargaining process,” emphasizing that this proposed action jeopardizes the wages, pensions, and other benefits of Unifor members while also significantly impacting Canada’s industrial sector, particularly in Ontario and the Brampton community.
Furthermore, more than 2,000 employees were laid off from the Brampton plant when it ceased operations in 2023. Last month, the union was informed that Stellantis was contemplating closing and selling the facility, which was initially slated for Jeep production before the plan was halted in early 2025, leading to the indefinite idling of the plant.
In a statement, Roman Shimonov, CEO of Roshel, pledged that former Brampton workers would receive priority for positions at the plant. Shimonov outlined the company’s plan to establish a Canadian Centre of Excellence for Defence Manufacturing in Brampton alongside its existing automotive production. He expressed readiness to offer job consideration to laid-off Unifor workers and bring them back to work as early as 2026 through various programs, including the federal government’s Light Utility Vehicles procurement initiative.
Brampton Mayor Patrick Brown expressed disappointment over the potential sale, highlighting the uncertainty faced by workers over the past three years. Brown criticized Stellantis for what he termed as a broken commitment and pledged to push the federal government to hold the company accountable for its obligations.
Additionally, Unifor raised concerns about the lack of confirmed plans for the Windsor assembly plant and Etobicoke casting plant. Longley stated that Stellantis would refrain from making further comments to respect the ongoing collective bargaining discussions with Unifor.
James Stewart, president of Unifor Local 444 (Windsor Assembly), disclosed in a video statement that the union had specific priorities in its negotiations with Stellantis, none of which were met. The union’s decision to pause bargaining is not indefinite, and discussions are ongoing to determine the next steps following the impasse with the company.