Canadian autoworkers authorize strike amid standoff with Stellantis
Published in Business News
Members of the Canadian autoworkers union employed by the parent of Chrysler, Dodge and Jeep voted 97.3% in favor of a strike after the parties reached an impasse.
The vote by Unifor members doesn't automatically mean there will be a strike against Stellantis NV. It gives the Toronto-based union's bargaining committee the authority to call one should it see a need. Unifor, however, is not in a legal strike position at this time as neither it nor Stellantis has requested a “No Board” report from the Labor Minister confirming a conciliation board won't be appointed to resolve the dispute, one of the steps necessary under Ontario labor law for job action, according to the union.
The talks carry enormous consequences, as Stellantis is threatening to sell its Brampton Assembly Plant to a defense contractor after moving product planned for there to the United States following the implementation of higher tariffs by the Trump administration.
“We believe there is a path to a fair collective agreement with Stellantis so long as the company honours its commitments and does right by its workers,” Unifor Stellantis Master Bargaining Chairperson James Stewart said in a statement Monday, Oct. 19. “Strike action is always a last resort, but we will not back down and accept a deal that weakens Stellantis’ footprint within Canada’s auto industry due to broken commitments that further cause devastation for our members, families and communities that rely on good union auto jobs.”
Negotiations between Unifor and Stellantis have been at a stalemate for more than a month after the transatlantic automaker disclosed it has a tentative agreement to sell its idled plant outside of Toronto to Roshel Inc. Unifor President Lana Payne has said the conflict is over the future of the 3 million-square-foot plant as well as the core economic pattern being conditional on an agreement to close and sell the plant.
"Stellantis," company spokesperson LouAnn Gosselin said in a statement, "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."
A strike could be a blow to Stellantis amid a company transformation to revitalize sales and launch new products. In addition to Brampton, Windsor Assembly Plant produces Chrysler minivans and the Dodge Charger sedan. The plant has experienced downtime in recent weeks and was slated to be down for another three weeks starting Monday amid shifting demand and the negotiations standoff. The company also has a casting plant in the country.
A walkout additionally would be a hit to Canada's manufacturing sector amid a trade war with the United States as the countries review the U.S.-Mexico-Canada trade agreement.
Brampton most recently made the Chrysler 300, Dodge Charger and Dodge Challenger sedans before production ended in late 2023. Workers and union officials had been awaiting the retooling and reopening of the plant to build a next-generation Jeep Compass last year, but that never happened as the company switched up its North American product strategy amid high U.S. tariffs on Canadian goods. Still, Unifor said it was assured by the company that Stellantis planned to invest in new programs for the plant.
Unifor already has reached new three-year deals with General Motors Co. and Ford Motor Co. Stellantis' previous contract with Unifor expired on Sept. 20.
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