Stellantis said Wednesday that job cuts are expected at its Windsor and Brampton assembly plants in Ontario in the coming months as the automaker looks to identify “efficiencies.”
The company announced Tuesday that it will offer a retirement incentive program and undergo a “downsizing of the workforce,” but did not comment on whether there would be layoffs on top of the positions eliminated through retired employees.
A Stellantis spokesman confirmed on Wednesday, however, that the job cuts are part of the plan.
“We hope to minimize potential layoffs with the retirement incentive packages,” LouAnn Gosselin said in a statement.
Stellantis, the company formed after Fiat Chrysler merged with Peugeot, makes the Chrysler Pacifica and other minivans in Windsor, and the Chrysler 300, Dodge Charger and Dodge Challenger in Brampton.
Across the two plants, in total, there are about 5,800 full-time active workers, about 3,500 in Windsor and 2,300 in Brampton.
The company has not commented on how many positions it wants to eliminate. It has previously committed to the eventual restoration of the third shift at the Windsor and Brampton plants, which would create additional jobs.
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Dave Cassidy, the president of Unifor Local 444, which represents Windsor workers, said when incentives like this are offered, it raises questions about the status of the second shift and the plan to restore the third shift.
Those plans, he said, have not changed.
The union has called for a retirement incentive for those who want to leave.
“This is an ongoing discussion that we’ve had for a number of years, and now they’re going to offer the incentive for people to go. There’s going to be some specific numbers around in the skilled trades and in manufacturing, and people will go there . have a chance to leave, and that will bring back some of our layoffs,” he said.
The layoffs will come ahead of historic investments in electric vehicle and battery production in Canada.
Stellantis pointed to the $3.6 billion pledged earlier this year to retool and modernize the Windsor and Brampton plants as a sign that it is firmly committed to its future in this country. The company has also partnered with LG Energy Solution to build a $4.9 billion EV battery plant in Windsor.
“As we transition to a sustainable technology and mobility company, we continue to review our operations for efficiency,” the company said Tuesday.