Canada is launching a dispute resolution process against Stellantis after the automaker said last month it would move jobs to the US.
Industry Minister Mélanie Joly told a parliamentary committee on Monday that Ottawa wants to recoup some of the tax money it has committed to Stellantis.
Joly said Stellantis moving production of the Jeep Compass from Brampton, Ont., to Illinois is a violation of a contract.
“Today, before the close of business, the government will take the next step under the contracts to recover Canadian taxpayers’ money,” Joly said.
“This means we will begin the 30-day period of the formal dispute resolution process to restore production at the Brampton facility. This is the beginning of the dispute resolution process.”
In September, the company said it would scrap plans to build the new Jeep Compass in Brampton and instead move production to Belvidere, Illinois.
The Canadian government, along with the province, has promised billions in subsidies to the automaker. under various contracts. This includes a joint $15 billion commitment to help Stellantis partner with NextStar/LG to build an electric vehicle (EV) battery plant in Windsor.
Ontario and the federal government also provided millions to help Stellantis retool its Windsor and Brampton plants to increase electric vehicle production.
Stephanie Tanton, associate deputy minister of Innovation Canada, told the committee that the contract on retrofitting is still under wraps because it contains confidential business details.
“We are working with the company at this time to be able to disclose the agreement,” he said.
Stellantis not maintaining lost jobs in Brampton
Both Tanton and Philip Jennings, Canada’s deputy minister of Innovation, Science and Economic Development, said there were job guarantees in the deal, but did not elaborate.
“We believe some are on the path to a violation,” Jennings told the committee.
For its part, Stellantis said Monday that the Brampton plant is paused, not closed, and “no jobs have been lost.”
“We have strong supports in place to help mitigate the effects of this decision and offer transfer opportunities at other Stellantis facilities whenever possible,” said spokesperson LouAnn Gosselin..
“We continue to work constructively with government partners and other stakeholders on a plan for Brampton to find viable solutions that build a long-term sustainable future for automotive manufacturing in Canada.”
The federal government is beginning its dispute resolution process with U.S. automaker Stellantis to restore production at its auto plant in Brampton, Ont., Industry Minister Mélanie Joly said Monday. Joly told a parliamentary committee that Stellantis moving its Jeep Compass production to Illinois is a violation of a contract.
MPs on the committee asked Joly about labor guarantees in contracts, including those revealed by CBC Windsor last week.
Joly stated that the contracts are interrelated and include guarantees. He also said the commitment for the new Windsor plant has not yet been fully spent.
Raquel Dancho, conservative representative for Kildonan—St. Paul in Manitoba, He criticized the government for not being more forthcoming.
Confidential agreements to provide billions of taxpayer dollars to the Windsor electric vehicle battery plant include some labor guarantees, according to redacted copies obtained by CBC Windsor. But it’s unclear whether they include protections for the Stellantis plant in Brampton, as federal officials have claimed. CBC’s Emma Loop explains it.
“We’re talking billions and billions and billions of dollars,” he said.
Joly said the parties “are not on different teams here. We all want the same thing, and the same thing is getting production back in Brampton.”
“It’s important for autoworkers to understand that we know anxiety exists,” he said.
“We know that we are at a crucial moment in which we have to fight for every job.”
