The political temperature in Ottawa soared this week as Finance Minister Francois-Philippe Champagne, former Industry Minister, found himself fiercely defending his negotiation tactics before the House of Commons Industry Committee. The conflict is about two federal contracts signed with Stellantis that are now under intense scrutiny after the automaker announced in October it would shift planned Jeep Compass production from its Brampton plant to the US, leaving approximately 3,000 workers in limbo.
Champagne asserted that the government “fought tooth and nail” to secure covenants protecting workers and the company’s Canadian presence. When Conservative MP Kathy Borelli accused him of “hiding” information, the Minister hit back: “You’re entitled to your opinion, but not to your facts. We fought to keep Brampton”. This prompted the pointed retort from Borelli: “Obviously, you didn’t fight hard enough because 3,000 people lost their jobs in Brampton”.
The heart of the dispute lies in the redacted contracts. Conservative MP Kyle Seeback claimed the documents show Stellantis only agreed to maintain an average of 4,475 full-time Canadian employees over the 12-year term. He argued this single clause created a massive loophole, allowing the company to reduce its workforce from 8,000 employees and still remain compliant. “They laid off 3,000 employees in Brampton now. They did exactly what they were allowed to do”, Seeback claimed, questioning the contract’s protective value.
One deal, signed in 2022 for the NextStar Energy EV battery plant in Windsor (a joint venture with LG Energy Solution), involves up to $15 billion in subsidies. A separate 2023 agreement provides about $500 million in federal funding. Champagne insists the $9.7 billion in total federal subsidies promised from Ottawa was tied to a “minimum threshold” of employment intended to keep both the Brampton and Windsor facilities operational.
Despite the government issuing a “Notice of Default” to Stellantis earlier this month, the automaker has repeatedly told Parliamentarians that the move is merely an “operational pause” and that they have no intention of closing the Brampton plant, promising a new model will be introduced. The entire debacle is playing out against the backdrop of Donald Trump’s past use of tariffs, which notoriously aimed to disrupt the North American automotive industry and move Canadian production stateside.
