- Unifor’s existing labor deal with Stellantis ends on September 20.
- Stellantis has signed an MoU to sell the Brampton site to a defense firm.
- The defense company says it will prioritize hiring former Stellantis employees.
Unifor, the Canadian union that represents over 9,000 Stellantis employees across the country, has threatened Stellantis with a strike as the fate of the Brampton Assembly Plant hangs in the balance.
For months, the car-making giant has been trying to establish a long-term business case for the plant ever since it decided to build the new Jeep Compass in Belvidere, Illinois, rather than at the Brampton site as initially expected. The site stopped building cars in late 2023, most recently handling production of the previous-generation Dodge Charger, Challenger, as well as the Chrysler 300.
Read: Stellantis Wants To Sell Canadian Plant, Infuriating Union
In a letter addressed to employees last Thursday, Stellantis Canada chief executive Trevor Longley said the company had exhausted all its options for the site, noting “each option was carefully reviewed [but] none provided a sustainable long-term business case that would support continued operations at the facility.”
A Sale Is Imminent
Stellantis quietly signed a memorandum of understanding with defense contractor Roshel on September 11 to potentially sell the plant. Unifor president Lana Payne quickly responded to this revelation, days before the existing labor deal with Stellantis expires on September 20. She isn’t impressed.
“However, bargaining remains extremely challenging right now, and we are at an impasse,” Payne stated. “Therefore, strike action remains a real possibility.” This week, Payne sent a letter to Canadian Industry Minister Melanie Joly, asking her to block a potential deal between Stellantis and Roshel.
Speaking with The Wall Street Journal, a Stellantis spokeswoman said the automaker is willing to restart labor-deal talks with Unifor and wants the union to meet with Roshel to understand their plans for the factory.
The defense contractor claims its plans for the Brampton site will create 2,000 jobs and says it will give “first consideration” to Stellantis workers. It’s reported that Roshel could build between two and three vehicles daily at the Brampton site, based on an existing chassis and powertrain, which would pale in comparison to the 500 – 1,000 that had been built there daily under Stellantis ownership. If this happens, it could cripple the local supply chain.
