The labor union representing Stellantis employees cautioned the U.S. automaker against underestimating its Canadian workforce as Unifor and the company commenced contract negotiations on Tuesday.
This round of talks signifies the concluding phase of Unifor’s discussions with the Detroit Three auto manufacturers. Typically, the union employs pattern bargaining strategies for its discussions in the automotive sector, aiming to establish conditions it can extend to other firms.
Although Unifor reached new collective agreements with Ford Motor Co. and General Motors in Canada earlier this summer, national president Lana Payne indicated that the most significant challenges are yet to come.
“We have certainly faced and overcome several obstacles, considering the current climate, the unpredictability, the tariffs, and the trade war initiated by Trump, alongside all the considerable challenges we encounter,” she stated during a press briefing.
“However, I won’t downplay the situation. We anticipate this round of negotiations to be the toughest and most demanding we have faced, possibly ever.”
The parties are aiming for a new agreement before the September 11 deadline. A primary issue for the union is job security, particularly following the layoffs of over 2,000 employees from Stellantis’ assembly facility in Brampton, Ontario, which has been inactive since 2023.
Last month, the union reported receiving indications that Stellantis was contemplating the closure and sale of the plant. The site was initially scheduled for retooling to produce Jeep models, a transition that began in early 2024 before the company halted the initiative in early 2025.
Subsequently, Stellantis announced it would shift Jeep Compass production to the U.S., an action the union deemed a breach of the existing collective agreement, resulting in the plant being left idle indefinitely.
In the previous month, Payne disclosed that the union was notified that Stellantis might close and sell the Brampton facility, yet the company failed to provide a formal written notice, which is mandated under the present collective agreement.
Unifor states that it received communication from Stellantis on Wednesday regarding the potential closure or sale of the Brampton plant. CBC’s Dale Manucdoc outlines what is known.
She emphasized on Tuesday that Jeep Compass production “should have remained at the Brampton facility,” describing the decision as “absolutely incorrect.”
“To put it plainly, Stellantis has significant work ahead to mend relationships with our members and Canadians at large,” she remarked.
“The first step in this process is to rectify matters with our members at Brampton Assembly, and that involves reinstating them to work manufacturing vehicles, not shutting down or selling the plant.”
On Tuesday, Stellantis acknowledged that labor negotiations with the union represent “a critically important process” for its future.
“The industry is experiencing a transformation regarding trade and regulatory conditions, markedly diverging from what was once a highly integrated marketplace here in Canada. We must confront these challenges directly,” stated Trevor Longley, chairman, president, and CEO of Stellantis Canada.
Longley highlighted that the automaker has invested over $8 billion in its Canadian operations since 2022. He indicated that this funding has strengthened the company’s manufacturing capabilities and advanced battery production technology in Ontario.
“It is reasonable to assert that Canada is a vital market for our long-term investments, and it will continue to hold that significance for us moving forward,” Longley told journalists during the negotiations.
“This is a crucial period for us. I believe negotiations will be fair and responsible, and I am optimistic that we will arrive at a mutually beneficial agreement that is sustainable.”
Tariffs increase pressure on discussions
The negotiations occur amid the backdrop of U.S. tariffs adversely affecting local auto manufacturers. A 25% duty on all vehicles and trucks not manufactured in the U.S. remains in effect, apart from those compliant with the Canada-United States-Mexico Agreement (CUSMA).
Last week, U.S. President Donald Trump threatened via social media to escalate tariffs on all vehicles, auto parts, and steel imported from Canada to 50% starting January 1.
Payne described the current economic climate as “an existential crisis for our auto sector,” asserting the necessity for Canada to maintain its automotive industry presence.
“The reality is — and Donald Trump is aware of this as well — a 50% tariff on vehicles and parts would effectively paralyze the entire North American auto sector, likely within a week or ten days,” she expressed.
“What we are facing now is a continuation of the same threats we have encountered over the past 18 months in this country, and the only viable response is to push back.”
Larry Savage, a professor of labor studies at Brock University, commented that Unifor is currently “contending with challenges on two fronts.”
“At the bargaining table, the union is urging Stellantis to sustain vehicle production in Canada and adhere to the pattern agreement,” he noted in an email.
“Simultaneously, in Ottawa, Unifor is advocating that the federal government reject any new trade agreement that could ultimately jeopardize the automotive industry in Canada.”
Vehicle components can traverse international borders multiple times before being assembled into a finished product. However, amid an ongoing trade war, as both Canada and the U.S. increase tariffs to 50%, the complexity and cost of car manufacturing escalates. CBC’s Acton Clarkin explains.
He remarked that the ongoing contract discussions extend beyond just Stellantis.
“The union is striving to safeguard the automotive industry within Canada. Attaining the pattern agreement will hold little value if the federal government compromises the auto sector in the ongoing trade conflict with Trump,” Savage asserted.
On Sunday, Unifor announced that its members at General Motors had voted overwhelmingly to ratify new contracts with the automaker, with 80.5% support from members in Oshawa, St. Catharines, and Woodstock, while those in Ingersoll showed a 96.5% approval rate.
The three-year collective agreements will raise wages for full-rate production workers to $50.20 per hour and skilled trades personnel to $62.71 per hour.
The union indicated that its agreements with GM reflect the three percent annual wage hikes achieved with Ford, which Unifor selected to initiate its pattern bargaining within the industry.
