Experts are supporting Unifor’s fight against Stellantis NV’s decision to sell its idle Brampton plant to Roshel Inc., a maker of armoured vehicles, cautioning that this could encourage other automakers to rethink their commitments to Canada.
Negotiations between the union, which represents around 2,200 employees at the facility, and Stellantis fell apart on September 11 after the union learned that the automaker had agreed to a memorandum of understanding (MOU) regarding the sale of the plant.
While Roshel claims it could quickly bring workers back if they secure a Canadian military contract for light utility vehicles, the union is against the proposed sale.
“The main concern for Unifor, and one I share, is that seeing a major automaker exit Canada would signal to others in the industry that this is possible-not just for Ford and General Motors that Unifor negotiates with but also for Honda and Toyota,” explained Jim Stanford, an economist and director at the Centre for Future Work.
Adding to the problem is that both provincial and federal governments invested hundreds of millions into helping Stellantis-owner of brands like Dodge, Jeep, and Peugeot-retool the Brampton plant in exchange for production commitments, he noted.
Initially, there were plans for the plant to manufacture the Jeep Compass; however, Stellantis shifted production of this vehicle to the U. S. due to tariffs on Canadian-made cars imposed by America. In a letter sent last week to employees, they stated they didn’t see a “long-term business case” for continuing vehicle production at this location.
“It’s premature to say ‘Okay, you can leave and we’ll just take whatever we can get,’” Stanford remarked about Stellantis’ proposal.
“Some jobs are better than no jobs, but right now we must focus on ensuring companies wanting to sell in Canada need to build here … and those making agreements must stick to them.”
Charlotte Yates, president of the Automotive Policy Research Centre and former head of University of Guelph, mentioned that permitting Stellantis to downsize its presence in Canada could have a “cascading effect” during such uncertain times for our auto sector.
“This isn’t just about one plant; it’s about preserving Canada’s automotive industry,” she said. “Unifor worries that if they’re allowed to backtrack at even slight signs of trouble from their agreements with government officials, how trustworthy are any contracts signed by an automaker?”
Last week Federal Industry Minister Mélanie Joly urged both Stellantis and the union to resume negotiations while clarifying that her office “didn’t participate in any form of negotiation or endorsement whatsoever” concerning discussions between Roshel and Stellantis.
She also reiterated Ottawa’s stance stating they would sue Stellantis if it backed out on its promise regarding finding products for this facility.
“Regarding the Stellantis plant my position has always been clear: That plant needs reopening. We require a new model. If not we’ll demand our money back,” she declared.
Ken Delaney from Canadian Skills and Employment Coalition expressed uncertainty about whether converting this plant into one producing military goods would have similar economic benefits as manufacturing commercial vehicles does.
He estimated assembly plants directly employ roughly 30,000 individuals while over 200,000 work within parts manufacturing or supplier industries.
However he pointed out that one defense contract might not create as many benefits for employment or overall economy as producing consumer vehicles typically does.
“It doesn’t offer security like having an established consumer product brand because people won’t stop purchasing Jeeps or General Motors products or Toyota items,” he stated. “But with defense work it really relies heavily on federal government contracts being awarded.”
With files from Bloomberg News
jjuha
Source link
Editor’s Picks
Source link
