The union representing Stellantis employees has cautioned the U.S. automaker to not overlook its Canadian workforce as Unifor and the company commenced contract negotiations on Tuesday.
This round of discussions represents the concluding phase of Unifor’s negotiations with the Detroit Three automakers. Traditionally, the union employs pattern bargaining for agreements in the automotive sector, establishing terms it aims to replicate with other manufacturers.
Although Unifor recently ratified new collective agreements with Ford Motor Co. and General Motors in Canada earlier this summer, the union’s most significant hurdle is still ahead, according to national president Lana Payne.
“We have managed to overcome several challenges considering the current circumstances, the unpredictability, the tariffs, and Trump’s trade war, in addition to all the substantial obstacles we face,” she stated during a press briefing.
“However, I won’t gloss over the situation. We anticipate this phase of negotiations to be the toughest and most demanding we’ve encountered, possibly ever.”
The involved parties are aiming to finalize a new agreement by the September 11 deadline. The union’s primary focus is on job security after over 2,000 workers were let go from Stellantis’ assembly plant in Brampton, Ontario, which has been inactive since 2023.
Last month, the union revealed it had been informed that Stellantis was contemplating the potential closure and sale of the assembly facility. The plant was initially scheduled for a retooling process to produce Jeeps, which was set to commence in early 2024, but the company halted this plan in early 2025.
Subsequently, the company declared it was relocating Jeep Compass production to the United States, which the union characterized as a breach of the existing collective agreement, leaving the plant idle indefinitely.
Payne mentioned last month that the union received information that Stellantis might close and sell the plant, although the company had not provided the union with a formal written notification, which is mandated by the current collective agreement.
On Tuesday, she reiterated that the production of the Jeep Compass “should have remained at the Brampton plant,” labeling it as the “absolutely wrong choice.”
“To be frank, Stellantis has much work to do and will need to make significant efforts to mend its relationship with our members and with Canadians,” she emphasized.
“It begins with rectifying matters with our members at Brampton Assembly, which means reinstating them to their jobs building vehicles, rather than shutting down or selling the plant.”
According to Stellantis, the labor discussions with the union represent “a critically important process” for the company’s future.
“The industry is experiencing a transformation in terms of trade and regulatory environments, diverging from what was previously a very integrated marketplace here in Canada, and we need to confront these challenges head-on,” remarked Trevor Longley, chairman, president, and CEO of Stellantis Canada.
Longley noted that the company has invested over $8 billion in its Canadian operations since 2022. He stated that this investment has strengthened the company’s manufacturing presence and advanced battery manufacturing technology in Ontario.
“It’s reasonable to assert that in terms of our long-term investment in Canada, this market is significant for us and will continue to be so in the future,” Longley conveyed to reporters during the negotiations.
“This is a crucial time for us. I believe [the negotiations will] be fair and responsible, and ultimately we will arrive at a sustainable agreement.”
Tariffs add extra pressure on negotiations
The ongoing discussions are set against a backdrop of U.S. tariffs impacting local automakers. A 25 percent duty on all vehicles and trucks not manufactured in the U.S. remains in effect, with exceptions for those adhering to the Canada-United States-Mexico Agreement (CUSMA).
Last week, U.S. President Donald Trump threatened via social media to increase tariffs on all vehicles, auto parts, and steel from Canada to 50 percent starting January 1.
Payne described the current economic situation as “an existential crisis for our auto industry,” emphasizing the necessity for Canada to maintain its automotive sector presence.
“The truth is — and Donald Trump realizes this too — a 50 percent tariff on cars and parts would effectively shut down the entire North American auto industry, likely within a week or 10 days,” she asserted.
“What we are currently facing are the same types of threats that have plagued us for 18 months in this country, and the only way to confront these threats is to push back.”
Larry Savage, a labor studies professor at Brock University, stated that Unifor is “fighting a battle on two fronts” at this time.
“At the bargaining table, the union is pressing Stellantis to keep vehicle production in Canada and agree to the pattern agreement,” he expressed in an email.
“Concurrently, in Ottawa, Unifor is urging the federal government to resist any new trade agreements that could ultimately jeopardize the auto industry in Canada.”
Automobile parts can cross international borders multiple times before being assembled into a vehicle. However, amid a trade conflict, as both Canada and the U.S. increase tariffs up to 50 percent, the process of manufacturing cars is becoming more expensive and complicated. The CBC’s Acton Clarkin explains.
He emphasized that the current contract negotiations extend beyond just Stellantis.
“The union is striving to preserve the auto industry in Canada. Securing the pattern agreement will be inconsequential if the federal government ultimately sacrifices the auto sector in a trade dispute with Trump,” Savage remarked.
On Sunday, Unifor reported that its members at General Motors overwhelmingly approved new contracts with the automaker, with 80.5 percent of those in Oshawa, St. Catharines, and Woodstock voting in favor, while 96.5 percent of Ingersoll members supported the agreement.
The three-year collective agreements will raise wages for full-rate production workers to $50.20 per hour and skilled trades employees to $62.71 an hour.
The union indicated that its agreements with GM reflect the annual three percent wage increases reached with Ford, which Unifor initially used to launch its pattern bargaining with the industry.