Unifor’s national leader is urging the federal administration to ensure that Stellantis adheres to what it refers to as earlier promises made to Canada and its automotive workers.
Lana Payne’s comments came in reaction to Industry Minister Mélanie Joly’s commitment made on Monday to a parliamentary committee regarding the effort to recover some of the tax incentives granted to the automaker.
“I believe the minister has accomplished a great deal in the past week, especially concerning the tariff remission initiative,” Payne stated to CBC News.
“These corporations will not be able to import vehicles without incurring tariffs due to their failure to uphold commitments to Canadian employees.”
Canada has initiated a dispute resolution process following Stellantis’s decision to relocate jobs associated with the new Jeep Compass model from its facility in Ontario to a factory in Illinois. The 30-day timeline began on October 20, when the government notified Stellantis about this action, according to Joly.
Nevertheless, Stellantis stated on Monday that the Brampton location is on hold, not shut down, asserting that “no jobs have been lost,” in a message to CBC News.
The federal government is beginning its dispute resolution process with U.S. automaker Stellantis in order to return production to its auto plant in Brampton, Ont., Industry Minister Mélanie Joly said Monday. Joly told a parliamentary committee Stellantis moving its production of the Jeep Compass to Illinois is a violation of a contract.
Payne emphasized that beyond the dispute resolution initiative, she wants Ottawa to employ every possible measure available.
“The fact is, in order to retain production in Canada, until we potentially establish a new trade agreement with the United States, we will need to take a strong stance or we risk losing production overseas, as we have been experiencing.”
She asserted that the automotive industry is vital for the nation and highlighted the necessity of holding companies accountable for their promises.
“We must defend it with all our might.”
Previously, the Ontario and Canadian governments committed billions in subsidies to Stellantis under various agreements. This included a significant arrangement to construct an electric vehicle (EV) battery facility in Windsor in collaboration with LG Energy Solution, along with plans to upgrade its Windsor and Brampton plants for EV production.