Unifor is demanding the federal government intervene to stop Stellantis NV from selling its Brampton plant, but the automaker has told employees it doesn’t see a “long-term business case” for making vehicles at the facility.
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Labour negotiations with Stellantis were put on hold last Friday after the union said it was informed the automaker had signed a memorandum of understanding (MOU) for the sale of the idle plant to Canadian armoured vehicle manufacturer Roshel Inc.
“Stellantis is 100 per cent serious about exiting Brampton. Currently, that is their only plan,” Unifor national president Lana Payne said at a news conference Thursday, adding the union is not accepting the decision.
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“Selling that plant in the middle of a trade war, and in the middle of collective bargaining, is indefensible. This would make Brampton the first auto plant to fall in this trade war. And when plants close, they rarely, if ever, come back.”
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Payne said Stellantis, which owns brands including Dodge, Jeep and Peugeot, had assured the union as recently as Aug. 12 that it was committed to the plant.
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The Brampton plant has been idled since 2023 after it began undergoing a retooling to produce the Jeep Compass. Stellantis has since announced plans to move production of the vehicle to the U.S., leaving the future of about 2,200 Brampton workers in limbo.
But Stellantis on Thursday sent a letter to employees saying the company has considered “a range of options” since it reversed those plans, a move made after United States President Donald Trump made it clear he would impose tariffs on foreign-made cars and trucks.
“The automotive industry continues to face unpredictable trade policies, challenging regulatory requirements and affordability pressures,” Trevor Longley, chief executive of Stellantis Canada, said in the letter.
“While each option was carefully reviewed, none provided a sustainable long-term business case that would support continued operations at the facility.”
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Vito Beato, president of Unifor Local 1285 in Brampton, said the letter represented the first time the automaker has communicated with workers in three years. He said Stellantis’s lack of commitment to the Brampton facility and uncertainty over its future are taking a heavy toll on workers.
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“We were supposed to be back to work right now, as of today, and when you look at our plant, it’s ready to go and it’s ready to build. Our members are ready to get to work,” he said.
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“Our members are very anxious and very worried right now, but we’re strong in sticking together and making sure that we can try to flip the script on this and get back to work as soon as we can and stay alive for another day.”
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Payne said Unifor has not been part of any discussions between Stellantis and Roshel, which is headquartered near the Stellantis plant in Brampton, and demanded more clarity from the federal government about its involvement in the potential deal.
“This is one of the reasons we need to understand what role, if any, the federal government has played here. We need to know what they know,” she said. “I’m not that happy with the role Roshel has played here, whether intended or not. It has interfered with and brought additional complications to our bargaining with Stellantis.”
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Roshel has said it is seeking a Canadian military contract worth as much as $4.9 billion to build light-utility vehicles. The company has told Prime Minister Mark Carney’s government it could quickly reactivate the facility if it lands the contract.
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Roshel chief executive Roman Shimonov has said his company is the only serious potential buyer for the facility and described the MOU as the first step in a “very complicated” process.
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“It’s a document that clearly specifies the plan, the responsibilities, the framework and everything else,” he said. “We have a clear plan, and this MOU is outlining the whole process.”
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Payne, however, said selling the plant and converting it into a military manufacturing facility, even if it could mean rehiring laid-off workers, is not an acceptable option for Unifor, and is seeking clarity from the government about what role, if any, Ottawa has played in the potential sale.
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She said such a move would significantly reduce Canada’s automotive footprint, adding that if Stellantis is willing to break its commitments in Brampton, it could also do so at its Windsor Assembly Plant, where the company produces the Chrysler Pacifica minivan, and its Etobicoke Casting Plant.
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“If Roshel wants to expand its operations in Brampton, we support that, but not at the Brampton assembly plant,” she said, adding the prospect of a defence contract can’t compare with the production of hundreds of thousands of commercial vehicles.
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Unifor also said its current collective agreement with Stellantis ends Sept. 20, but that is not a strike deadline.
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“However, bargaining remains extremely challenging right now and, as I’ve stated, we are at an impasse,” Payne said. “Therefore, strike action remains a real possibility.”
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