Brampton sale, tariffs loom over Stellantis-Unifor labor talks
Unifor is ramping up pressure on Stellantis and seeking to guarantee retaining its Canada-based auto plants, after receiving authorization to strike if needed from 97.3% of its union members.
Unifor, which represents thousands of auto workers in Canada, has been working to renegotiate its labor contract with the Detroit 3 automakers this year. Over the summer, it reached similar deals with Ford and General Motors. But while negotiations with Stellantis started in August, they hit a snag when the automaker announced it was selling its idled Brampton Assembly Plant in Ontario.
The union members and automaker now find themselves on the opposite side of a core issue to both: Stellantis wants to sell its facility, while unionized auto workers have given leadership the authority to call a strike over the decision, if needed.
In speeches to members, union leaders have made clear this strike vote was heavily tied to the fate of the Brampton Assembly Plant.
Vito Beato, president of Unifor Local 1285, which represents Brampton workers, said in a video message to members that authorization would give negotiators “the tool we need at the bargaining table.” Later, he added: “I cannot stress enough how we need a 100% yes vote from our membership.”
Similarly, union posts on Facebook and X have highlighted an Oct. 7 quote from James Stewart, the Unifor-Stellantis master bargaining chairperson, saying: “If we don’t fight for Brampton, if we don’t fight for a commitment they made to Brampton, then it sends a message to Stellantis that they can walk away from any agreement they make because no one is going to fight for it. We can’t allow that to happen.”
Stewart is also President of Unifor Local 444, which represents workers at the Windsor Assembly Plant. Workers he represents have recently seen some downtime and layoffs, and in early October, he let union members know Stellantis would idle the plant for three additional weeks, from mid-October through early November. Stellantis confirmed that timeline to WardsAuto, noting the downtime is “inresponse to evolving market conditions, including consumer demand and the impact of tariffs.”
Commenting on the strike vote, LouAnn Gosselin, Stellantis Canada’s head of communications, told Wards Auto: “Stellantis remains committed to bargaining in good faith and is prepared to continue discussions toward a negotiated agreement that recognizes the contributions of our employees while supporting the long-term competitiveness of our Canadian operations.”
Meanwhle, Stellantis stressed to Wards it was still seeking to sell Brampton to Roshel, highlighting a September statement by Stellantis Canada President Trevor Longly explaining the position.
“Rather than allowing this important industrial asset to remain idle indefinitely, Stellantis responded to a pro-active offer from Roshel that could transform a legacy automotive facility into a productive operation supporting a rapidly growing industry,” Longly said in the statement. “We believe this innovative approach offers a credible path to create jobs, return the site to productive use and generate long-term economic value for the Brampton community, Ontario and Canada.”
Since Stellantis has shown no indication of changing its plans to sell its Brampton Assembly Plant, and the union appears entrenched in its position, WardsAuto asked experts: Is there a path forward do the labor union and automaker?
Severance deal could be an eventual solution
One key issue from Stellantis’ perspective is that costs are stacking up.
The company is still paying supplementary unemployment benefit and income maintenance benefits to the 2,200 Brampton staff on extended layoff, designed to deliver 70% of pay to workers, according to the Unifor-Stellantis bargaining report. On average, as per its 2023 Unifor agreement, that could cost CA$70,000 ($50,000) per worker annually — or CA$154 million — for no work.
Peter Sandor, a former Brampton plant production, process and operations manager, for more than 35 years, argued that a generous severance package might enable Unifor to accept a sale to Roshel, who he thinks could employ less than one quarter of Brampton’s laid-off Stellantis staff from the site.
A politically acceptable severance would need to offer two-to-three times the statutory amount for non-transferring staff, according to Sandor, well above the CA$80,000 owed to the longest serving average worker in Brampton under Ontario labor law.
“It’s not that big an amount for a global company like Stellantis,” Sandor told WardsAuto.
Greig Mordue, associate professor at the W Booth School of Engineering Practice and Technology at McMaster University in Hamilton, and a former general manager of Toyota Canada said all involved parties have different incentives, but Stellantis is “the only party that is upfront and realistic about this.”
“Unifor wants membership; public policy actors want automotive production or jobs and investment; but Stellantis has said: ‘We’re not in the jobs and investment game in Brampton,” Mordue said in an interview. “Roshel is there but there’s a lot of ambiguity and questions,” he added, referring to the defense contractor’s plans there.
As for the strike vote, Sandor said he was surprised at the high yes vote, but it reflected trust in union leaders and an indication that “people at Windsor think they are on a solid footing” over Stellantis remaining in the city, which is just over the Detroit River.
“If you’re looking at the size of a plant and how much has been invested into it, people have a hard time understanding how a company could walk away from such a huge investment,” Sandor said.
“It gives the union more power in negotiations,” said Mordue. “It gives the union a mandate and more importantly it gives a message to Stellantis.”
Is the union waiting for a weaker Trump?
Farid Ahmad, founder and CEO of Toronto-based Dealer Solutions Mergers and Acquisitions, an auto sector M&A advisory firm, thinks a major midterm loss could weaken President Trump politically.
“It would take pressure of Stellantis having to try to force more production into the United States out of Canada,” Ahmad said in an interview.
The political calculus might explain why the union is slow-walking the dispute. In its statement announcing the strike authorization, the union stressed neither it nor Stellantis have started the clock on a strike or lockout. Ontario’s collective bargaining process requires the negotiating parties to submit a “no board” notice — an acknowledgement that formal conciliation is over — to Ontario’s labor minister at least 17 days before a strike or lockout can occur.
The fact the no-board notice has yet to be delivered means any industrial action could only take place well after Election Day in the U.S., which is November 3.
Sandor predicted that ultimately, if the elections don’t go his way, Trump will find a way to not follow through on the threat of 50% tariffs against Canada, as that action would hamper both Canada’s auto sector and U.S. parts suppliers — a political risk a weakened president may not be willing to take.
“Everyone’s waiting for the midterm elections; everyone is waiting to see what will happen,” said Sandor.
A potential ‘whack-a-mole’ of legal challenges
Mordue, however, thinks Trump will continue with protectionism in general, even without control of the U.S. Congress, as he acts through executive orders, with his different authorizations sparking a “game of whack-a-mole” in legal challenges.
That may continue to worry the Canadian and Ontario government, given Canada-based automotive manufacturing volumes continue to fall, according to an Oct. 14 analysis from Ontario-based DesRosiers Automotive Consultants, which was sent to Wards Auto in an email.
Calling the projected Brampton sale “another blow on the sector,” DesRosiers projects that the value of Canada-based automotive assembly shipments will fall well below CA$30 billion in 2026, having been well above that threshold in 2025. Canadian parts sales, however, will hold steady this year around CA$20 billion, as in 2025.
“With the threat of strike action at Stellantis imminent, and production at Ford Oakville only ramping up slowly, it seems unlikely that shipments will see a return to strong growth any time soon,” said the consultancy.
“Manufacturing in Canada’s auto sector has been targeted by both fate and policy” Andrew King, managing partner at DesRosiers Automotive Consultants, said in the firm’s analysis. “However, it is important that government at all levels support this critical sector of the Canadian manufacturing base during this unstable period.”
“I think the union’s doing what they should be doing to protect Canadian jobs,” emphasized Ahmad, noting that Unifor has tacit support for its tough stance from the Canadian government.
Could an extended dispute hurt Stellantis’ sales in Canada?
Moreover, Ahmad warned that the government could also make life difficult for Stellantis if it overplays its hand — for instance, by imposing excise taxes if union workers strike at Windsor and Stellantis responds by threatening to pull out of that facility as well.
“Stellantis are already on very shaky ground with their dealers,” he argued. “So, you don’t need much to tip that over. As any country would, and any government would, if they had to fight dirty, I believe they would fight dirty.”
But in the longer-term, Ahmad does not think a company that pulled out of Canada would suffer in a vehicle market where buyers are notoriously thrifty.
“Canadians would put affordability first; patriotism second in my view,” said Ahmad. Everybody’s under the gun — their budgets, their home expenses, insurance, and everything’s going up — so if they have to look the other way, but they get a cheaper deal, they won’t care where the car’s made.”