Unifor is calling on the federal government to intervene and prevent Stellantis from selling its idled Brampton assembly plant to Canadian armoured-vehicle manufacturer Roshel.
In a letter sent Wednesday to Industry Minister Mélanie Joly, Unifor national president Lana Payne warned that the proposed sale could end vehicle assembly at the facility, putting more than 2,000 workers at risk and affecting thousands of additional employees at nearby supplier companies.
Payne asked the federal government to clarify its role in discussions surrounding the potential sale. She also questioned whether the memorandum of understanding between Stellantis and Roshel could violate conditions attached to commitments the automaker made when it received public financial support. The proposed sale was announced last Friday, when Stellantis confirmed that it had signed a memorandum of understanding with Roshel. The agreement is not a completed transaction, and the final future of the plant has not yet been determined. Stellantis said it had considered several options for the facility and believes Roshel could provide a path toward restoring sustainable operations while preserving the site’s manufacturing capabilities. Roshel has proposed transforming the location into a defence-manufacturing centre and has indicated that it could prioritize rehiring laid-off Unifor workers. Roshel CEO Roman Shimonov said the company intends to create more than 2,000 jobs through defence and automotive-related opportunities, including potential work connected to federal vehicle procurement programs. The company has also discussed producing ballistic steel and expanding Canada’s domestic defence-manufacturing capacity. Unifor argues that defence manufacturing would not provide an equivalent replacement for automotive assembly. The union says the Brampton plant supports high-paying unionized employment and contributes to a wider network of suppliers, contractors and local businesses. The plant has been idle since 2023, when Stellantis halted operations to prepare for the planned production of the Jeep Compass electric SUV. Retooling work was later paused, and Stellantis subsequently announced that future Jeep Compass production would be moved to the United States.
The union has criticized that decision, arguing that it breached collective-agreement commitments and government funding agreements. Unifor has also warned that the loss of vehicle assembly would weaken Canada’s automotive manufacturing base.
The plant’s future has become a central issue in contract negotiations between Stellantis and Unifor. The two sides reached an impasse after 10 days of talks, and negotiations have been paused. The current collective agreement is scheduled to expire on September 20 at 11:59 p.m. Industry Minister Mélanie Joly has encouraged the union and Stellantis to continue negotiations. She said the federal government wants to protect Canadian workers and secure a new production model for the facility. Joly also indicated that Ottawa could seek the return of public funds if Stellantis fails to meet its commitments. Ontario Premier Doug Ford has said he supports efforts to find a new model for the plant and wants the province to work with the federal government and Stellantis.
The dispute comes amid broader uncertainty in Canada’s automotive sector, including the impact of U.S. tariffs, changing production plans and increasing competition for manufacturing investment. Unifor says the federal government must take stronger action to protect domestic auto production and prevent further job losses.
For now, the proposed sale remains under discussion. The federal government has not announced whether it will attempt to block the transaction, while Stellantis and Roshel have not provided a final timeline for completing the potential deal.