Canada is starting a dispute resolution process against Stellantis after the automaker said last month that it’s moving jobs to the U.S.
Industry Minister Mélanie Joly told a parliamentary committee Monday that Ottawa wants to recover some of the tax dollars 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 that we will start the 30-day period of the formal dispute resolution process in order to bring back production at the Brampton facility. This is the start of the dispute resolution process.”
In September, the company said it would be scrapping plans to build the new Jeep Compass in Brampton, instead moving production to Belvidere, Ill.
The Canadian government, along with the province, has pledged billions in subsidies for the automaker under various contracts. This includes a joint commitment of $15 billion 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 ramp up EV production.
Stephanie Tanton, assistant deputy minister of Innovation Canada, told the committee the contract around retooling is still under wraps because it contains confidential commercial details.
“We’re working with the company at this time to be able to disclose the agreement,” she said.
Stellantis maintains no jobs lost in Brampton
Both Tanton and Philip Jennings, deputy minister of Innovation, Science and Economic Development Canada, said there were job guarantees in the agreement, but stopped short of elaborating.
“Some we think are on track toward a breach,” 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 robust supports in place to help mitigate the effects of this decision and are offering transfer opportunities at other Stellantis facilities wherever 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 sustainable, long-term future for automotive manufacturing in Canada.”
Members of Parliament on the committee asked Joly about job guarantees in the contracts, including those revealed by CBC Windsor last week.
Joly said the contracts are interlinked and include guarantees. She also said the commitment for…
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