Stellantis, the automaker, has announced it signed a memorandum of understanding with Canadian armoured vehicle manufacturer Roshel regarding a possible sale of its unused assembly plant in Brampton, Ontario.
At the same time, the union that represents Stellantis workers in Canada stated it has halted contract negotiations due to a deadlock concerning the future of the Brampton facility.
Trevor Longley, chairman, president and CEO of Stellantis Canada, mentioned that several options were evaluated for the site, which has been out of operation since 2023.
“Stellantis believes that Roshel represents a strong path to restoring sustainable operations at Brampton Assembly, preserving the site’s strategic role in Canada’s advanced manufacturing sector and helping to avoid a prolonged period of inactivity,” Longley said in an emailed statement.
Unifor is currently “actively considering next steps” and plans to share more information soon.
The existing collective agreement between Stellantis and Unifor is set to end on Sept. 20 at 11:59 p. m.
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The discussions started on Sept. 1 in Toronto after Unifor ratified new collective agreements with Ford Motor Co. and General Motors earlier this summer as part of its pattern bargaining approach with each of the Detroit Three.
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The union had set a Sept. 11 deadline for reaching a new agreement with Stellantis but reported Friday that negotiations fell apart after 10 days.
“The persistence of the company’s proposal to close and sell the Brampton plant has hindered the bargaining process,” said Unifor spokesperson Kathleen O’Keefe in a statement.
“The proposed facility closure and sale threaten the wages, pensions and other benefits of Unifor members. It also deals a devastating blow to Canada’s industrial sector, especially in Ontario and within the community of Brampton.”
She added there is “no economic substitute for automotive assembly in Canada, including the extensive supply chain, regional economic activity, and high-quality, union jobs connected to it.”
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More than 2,000 employees were laid off from the Brampton plant when it ceased operations in 2023.
Last month, Unifor indicated they received notice that Stellantis was contemplating closing and selling off the plant.
The facility was initially scheduled for retooling for Jeep production starting early in 2024; however, those plans were paused early in 2025.
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Later on, it was revealed that production of Jeep Compass would be shifted to facilities in the U. S., which Unifor argued violates their current collective agreement while leaving the plant idle indefinitely.
Apart from job uncertainties at Brampton, Unifor noted that Stellantis hasn’t confirmed expected plans for its Windsor assembly plant or Etobicoke casting plant either.
“Unifor has consistently maintained its stance that there will be no tentative settlement without an appropriate resolution for Local 1285 members at Brampton,” O’Keefe said.
“The union has reiterated this position to both company representatives and government officials.”
Longley remarked that Stellantis would not provide further comments “out of respect for the collective bargaining process with Unifor.”
& copy 2026 The Canadian Press
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