Unifor threatens to suspend talks with Stellantis unless Ottawa blocks sale of Brampton plant

The Unifor union says it won’t return to collective bargaining with Stellantis NV until it has assurances the federal government will refuse to allow the automaker to close and sell its car plant in Brampton, Ont.

The union, which represents 9,000 Stellantis workers in Canada, walked away from the bargaining table on Sept. 11 after the automaker confirmed it has a preliminary agreement to close the Brampton plant and sell it to defence contactor Roshel. The plant closed for retooling in 2023, and Stellantis moved its planned Jeep production to the United States last year after the U.S. imposed 25-per-cent tariffs on Canadian-made cars.

The sale of the plant would mean the end of Stellantis employment for 2,200 workers, and, the federal government has said, puts Stellantis in violation of a funding agreement that saw the company receive millions of taxpayer dollars to retool the plant.

Lana Payne, national president of Unifor, said at a press conference on Thursday that labour talks with Stellantis will not resume until the union is confident the federal government will not allow the plant to be closed and sold.

“We need to know what they’re going to do with us to fight for Brampton assembly plant to produce cars there,” Ms. Payne said of Prime Minister Mark Carney’s government. “They have made a commitment to Canadians that they’re willing to fight for Brampton. They’re willing to fight for the auto industry. Well, let’s put some real action behind those words.”

The federal government gave Stellantis as much as $529-million for work on plants in Brampton and Windsor.

Industry Minister Mélanie Joly said on Sept. 16 the government wants Stellantis to build cars at the plant and will “put maximum pressure to make that happen. And if they don’t, we’ll get our money back.”

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Ms. Payne said that is not good enough.

“We continue to receive assurances from governments that they are willing to do what it takes to save Brampton,” Ms. Payne said. “But that will require action. Payback of funds from a broken contract is not the answer, not unless it keeps the Brampton plant open for the workers and the suppliers who depend on it.”

Unifor on Wednesday made public a four-page letter it sent to Ms. Joly, seeking, among other answers, a guarantee that Stellantis’s sale of the plant would not be seen as a fulfillment of its mandate to explore other uses for the plant.

“We cannot accept that the closure and sale of the Brampton plant is the outcome of a year-long government-led exercise to protect autoworkers and auto capacity in this country,” the letter said.

Ms. Joly’s office and Innovation, Science and Economic Development Canada did not immediately respond to e-mailed questions.

Trevor Longley, chief executive officer of Stellantis Canada, told Brampton employees in an e-mail on Thursday the carmaker has been unable to find a vehicle to manufacture at the plant that made business sense on the long run. The options considered included partnerships with other companies, Mr. Longley said.

“Market and trade conditions have directly impacted the original business case for Brampton,” Mr. Longley said. “The automotive industry continues to face unpredictable trade policies, challenging regulatory requirements and affordability pressures.”

Unifor is trying to reach a three-year collective agreement with Stellantis that matches the contracts approved recently with Ford and General Motors. Those contracts provide raises of 3 per cent a year.

The Brampton plant’s future is central to the talks, as is securing production and employment at the factories in Windsor and Toronto.

The Stellantis collective agreement ends on Saturday, but Ms. Payne said the union has yet to hold a strike vote or apply for federal conciliation, and is weeks away from being in a strike position

Still, she said, “we are at an impasse. Therefore, strike action remains a real possibility.”

Brampton-based Roshel makes armoured vehicles for military and security industries.

Roman Shimonov, Roshel’s founder, said in a statement he has an “ambitious plan” to turn the Brampton plant into a site for manufacturing light utility vehicles for a federal government defence procurement project, in addition to other markets and products. He said he is ready to hire an unspecified number of laid-off Stellantis workers as early as this year.

“We look forward to successfully concluding our discussions with Stellantis and implementing our plans to bring over 2,000 jobs, as well as new sovereign capabilities, including the production of ballistic steel, to Canada and to this facility,” Mr. Shimonov said.

Ms. Payne said she has not talked to anyone at Roshel, and said the job offer depends on Roshel winning a government contract.

“I’m not that happy with the role Roshel has played here, whether intended or not,” she said. “It has interfered with and brought additional complications to our bargaining with Stellantis. Canada cannot afford to lose its vehicle assembly capacity. And there is no substitute, not for the quality of jobs, not for the pay and benefits, not for the supply chain.”