The labor union representing employees at Stellantis issued a caution to the American automaker regarding Canadian workers as contract negotiations between Unifor and the company commenced on Tuesday. Unifor is at the final stages of bargaining with the Detroit Three automakers and typically employs a pattern bargaining strategy for negotiations within the auto sector to establish terms that can be applied across various companies.
National president Lana Payne expressed that despite successfully finalizing new collective agreements with Ford Motor Co. and General Motors in Canada earlier this summer, Unifor faces its toughest challenge yet. Payne acknowledged the various obstacles faced, including uncertainties, tariffs, and trade wars, emphasizing the upcoming negotiations as potentially the most difficult to date.
The parties are aiming to reach a new agreement by the September 11 deadline. Unifor’s primary concern revolves around job security following the layoff of over 2,000 workers from Stellantis’ Brampton, Ont., assembly plant, which has been inactive since 2023.
Recently, the union was informed of Stellantis contemplating the closure and sale of the plant, initially planned for Jeep production. However, the process was halted in early 2025, leading to the indefinite idling of the facility after relocating Jeep Compass production to the U.S., breaching the existing collective agreement, according to the union.
Payne reiterated dissatisfaction with the decision to move Jeep Compass production from the Brampton plant and stressed the importance of rectifying the situation with the plant employees by ensuring their employment and not resorting to closure or sale.
Stellantis acknowledged the significance of the labor negotiations, citing the industry’s evolving trade and regulatory landscape and the need to confront these challenges. The company highlighted its substantial investments exceeding $8 billion in its Canadian operations since 2022, aimed at enhancing manufacturing capabilities and advancing battery technology in Ontario.
The ongoing talks occur amidst U.S. tariffs affecting local automakers, with a 25% tariff on non-U.S.-built vehicles in place. Payne emphasized the critical nature of maintaining Canada’s auto sector in the face of economic pressures, warning against potential tariff increases that could severely impact the North American auto industry.
Larry Savage, a labor studies professor, noted Unifor’s dual battle to preserve vehicle production in Canada and uphold the pattern agreement with Stellantis while also advocating against trade agreements that could jeopardize the Canadian auto industry.
Unifor recently announced overwhelming support from members at General Motors for new contracts, with wage increases and terms in line with agreements reached with other automakers. The successful negotiations with GM reflect Unifor’s strategic pattern bargaining approach in the industry.