BRAMPTON
Stellantis NV has finalized the sale of its idled assembly plant in Brampton, Ont., to defence contractor Roshel Inc. for an undisclosed amount.
The companies said the deal is expected to close by the end of the year, subject to regulatory requirements.
Unifor national president Lana Payne called the sale an "unacceptable outcome" and the "worst-case scenario" for the union and its members.
"Stellantis has betrayed our members with an underhanded deal to sell the plant and walk away from its commitments to these workers," Payne said.
She said closing and selling the plant cuts Canada's auto vehicle production capacity by 10 per cent, costing thousands of union jobs and thousands more along the supply chain.
Stellantis chief executive officer Antonio Filosa said the agreement creates new opportunities in the defence business.
"Brampton employees have made lasting contributions to Stellantis, and we take our responsibilities to them and their families seriously," Filosa said. "After three years of paid layoff, we remain committed to working with Unifor on a fair resolution."
Roshel founder and CEO Roman Shimonov said the company's plan is to create a new centre of excellence for advanced manufacturing in the facility.
Industry Minister Mélanie Joly said in a statement on X that she wants Stellantis to meet with the union and government officials this week to talk about "protecting good paying jobs in Brampton."
"Stellantis’s decision does not erase the commitments they made to the workers of Brampton," she said, adding that the government is focused on finding solutions for the more than 2,000 Stellantis workers who remained on layoff benefits.
A source familiar with the matter told The Globe and Mail that Stellantis will lease back 25 per cent of the plant for possible vehicle assembly while Roshel will retain control over the rest.
The plant was closed for retooling in 2023, and Stellantis moved planned production of the Jeep Compass to Illinois last year after the U.S. imposed 25 per cent tariffs on Canadian-made cars. When it closed, the plant employed more than 3,000 people.
Ottawa contributed as much as $529 million to Stellantis for work on plants in Brampton and Windsor. The federal government has said Stellantis's decision to shift production violated agreements the company made when it received taxpayer funding.
Unifor has fought to reopen the plant and walked away from collective bargaining talks with Stellantis in September when the employer confirmed it had a preliminary agreement to sell the facility.
The union said the company proceeded with the sale despite being in violation of the collective agreement and in breach of commitments to the federal government.
Vito Beato, vice-chairperson of the Unifor Stellantis Master Bargaining Committee, said the sale sacrifices thousands of auto jobs for "hundreds of hypothetical jobs that depend on military procurement contracts that haven’t even been awarded yet."
The news of the sale comes as contract talks between Stellantis and the union representing more than 9,000 of its workers in Canada remain at an impasse. Last month, Stellantis workers in Canada voted to give their union a mandate to strike.
Joly said she has reached out to representatives from Stellantis, Unifor, the Ontario government and the City of Brampton to hold a meeting later this week.
International Trade Minister Maninder Sidhu, also MP for Brampton East, said he supports Joly's call for a return to the bargaining table. "More than 2,000 Brampton assembly workers and their families deserve answers about their future," Sidhu said.
This story was written by the e2gold.ca newsroom from reporting by The Globe and Mail, Automotive News, CBC News and Unifor National. Quotes are checked word for word against that reporting.