The labor union representing employees at Stellantis has cautioned the American automaker against undervaluing its Canadian workforce as Unifor and the company initiated contract discussions on Tuesday. These negotiations mark the final phase of Unifor’s talks with the Detroit Three automakers, where the union typically establishes terms it aims to replicate with other firms.
Despite recently approving new collective agreements with Ford Motor Co. and General Motors in Canada, Unifor’s national president Lana Payne emphasized that the most significant challenge lies ahead. Payne acknowledged the challenging circumstances, including uncertainty, tariffs, and trade tensions, stating that the upcoming negotiations might be the toughest to date.
Both parties are striving to reach a new agreement by a deadline set for September 11. The primary concern for the union revolves around job security following the layoff of over 2,000 workers at Stellantis’ Brampton, Ontario, plant, which has been inactive since 2023.
Recently, the union received notification suggesting the potential closure and sale of the plant by Stellantis. Originally intended for Jeep production, the facility’s retooling commenced in early 2024 but was halted in early 2025. Subsequently, the decision to shift Jeep Compass production to the U.S. was deemed a breach of the existing collective agreement by the union, leading to the indefinite idling of the plant.
Emphasizing that the relocation of Jeep Compass production from the Brampton plant was erroneous, Payne reiterated the necessity for Stellantis to rectify its relationship with Canadian workers. Stellantis acknowledged the significance of the ongoing labor discussions, characterizing them as a crucial step for its future amid the evolving trade and regulatory landscape in Canada.
Highlighting the impact of tariffs on the negotiations, Payne underscored the critical nature of preserving Canada’s automotive sector given the economic challenges. Larry Savage, a labor studies professor, noted the dual battles Unifor is currently facing – urging Stellantis to maintain vehicle production in Canada while also advocating against trade agreements that could jeopardize the domestic auto industry.
Unifor recently announced overwhelming approval from its members at General Motors for new contracts, with wage increases set for full-rate production members and skilled trades workers. These agreements mirror the wage hikes secured with Ford, which kicked off Unifor’s pattern bargaining approach with the industry.