Champagne defends Stellantis contracts as MPs press on job guarantees

Finance Minister Francois-Philippe Champagne on Wednesday defended his efforts to protect auto manufacturing jobs in Ontario while facing sometimes personal attacks from Conservative MPs over the fate of Stellantis workers in Brampton.

Champagne, in his previous role as industry minister, helped negotiate two federal contracts with Stellantis that are now under scrutiny, after the company announced in October it will shift planned production of the Jeep Compass from its Brampton plant to the U.S.

During testimony at the House of Commons industry committee, Champagne said the government secured “a number of covenants” from Stellantis that protected workers and the company’s presence in Canada.

“I’ve met with a number of the workers (in Brampton) and they know we fought nail and tooth to make sure of that,” he said after Conservative MP Kathy Borelli accused the minister of “hiding” information from the public about the contracts.

Story continues below advertisement

“You’re entitled to your own opinion, but you’re not entitled to your own facts. We fought to keep Brampton,” he added.

“Obviously you didn’t fight hard enough because 3,000 people lost their jobs in Brampton,” Borelli said.

“Speaking with the minister today, we can clearly see the minister and his government are simply not up for the job. … Sir, are you proud of yourself and the contract you made with Stellantis?”

“If you want the truth and the facts, I’m happy to be here,” Champagne responded. “If you want to come here and question my character, I’ll let Canadians judge that.”

4:13 Poilievre slams Carney over redacting Stellantis contract, leaving parliament during QP

The Liberal government has been under pressure to disclose the full, unredacted contracts with Stellantis and reveal whether they included job guarantees for the Brampton plant.

Story continues below advertisement

The government says the move was a violation of those contracts and served Stellantis with a notice of default earlier this month.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

One contract, announced in 2022, is a special contribution agreement between NextStar Energy, a joint venture between LG Energy Solution and Stellantis, and the federal government for a battery plant for electric vehicles in Windsor. That contract would provide up to $15 billion in subsidies, one-third of which would be paid by the Ontario government.

Another agreement from 2023 sets out how the federal government would provide NextStar with some $500 million in funding through the strategic innovation fund.

More on Politics More videos

• Danielle Smith becomes first Alberta premier in 90 years to face citizen recall
• Carney protegé eyed to succeed Hillman as Canada’s U.S. ambassador: sources
• Alberta legislature passes bill invoking Charter override for 4th time
• Trump’s security strategy won’t meddle in Canada’s affairs, Hoekstra says

• Canada’s longtime ambassador to U.S., Kirsten Hillman, resigns
• Japan calls China-Russia bomber drills near its airspace ‘a show of force’
• Poilievre lambasts Carney for $800,000 last-minute trip to Egypt
• Poilievre’s election loss to Trudeau’s new romance: Quip-filled political poems crack up Parliament

Champagne said the federal contracts with Stellantis amounted to a total of $9.7 billion in subsidies from Ottawa, of which $40 million has been disbursed to date.

Conservative MP Kyle Seeback said redacted versions of the contracts released to the committee shows Stellantis agreed to maintain an average of 4,475 full-time employees in Canada. He claimed that clause allowed the company to reduce its workforce from 8,000 employees.

“That means they could fire 3,500 employees and still be in compliance with this agreement. And that there, sir, is the problem,” he said.

“Now they’ve fired 3,000 employees in Brampton. They did exactly what they were allowed to do. How can you say this was a contract that was going to protect the workers?”

Story continues below advertisement

Around 3,000 workers remain furloughed at the Brampton plant after the Jeep Compass production shift. Most were laid off in 2023 so the plant could be retooled for electric vehicle production, and the plant was closed entirely the following year to prepare for the new production line.

Trending Now

• Sophie Kinsella, author of ‘Shopaholic’ novels, dead at 55
• ‘Prices have not come down,’ says Bank of Canada after holding rates

1:46 Business Matters: Feds launching dispute process against Stellantis

Champagne repeatedly said the job numbers in the contract was an average over 12 years and were “a floor” for employment, and that the clause was connected to commitments to keep the Brampton and Windsor plants open and operational.

The minister accused Seeback and other Conservatives of making “assumptions” about negotiations they weren’t a part of and misleading Canadians about the contracts. He often claimed he was trying to “help” members understand the agreements.

“Maybe I’m getting old, but I could not remember seeing you at the table when we negotiated,” Champagne told Seeback at one point.

Story continues below advertisement

He did not directly answer when asked by Seeback if he informed Unifor of the job numbers clause, only saying the government discussed the negotiations with “a number of stakeholders.”

“You know what, I’ll just take this clause and ask (Unifor national president) Lana Payne if you talked to her about it before you signed it,” Seeback shot back.

“I probably talk to Lana Payne a lot more often than you do, sir,” Champagne responded.

Stellantis executives have repeatedly insisted to MPs at committee and in public statements that the company does not intend to close the Brampton production plant, calling the move an “operational pause.”

Executives have pointed to investments made by Stellantis in Canada in recent years as proof of its “clear” commitment to keeping its Canadian footprint.

The production shift and other auto plant closures and reductions have come as U.S. President Donald Trump has upended the North American automobile industry with his tariffs. Trump has repeatedly said he doesn’t want cars made in Canada and has boasted about Canadian auto plants relocating to the United States.

The company has promised to bring a new model to the Brampton plant, but likely not until after the Canada-U.S.-Mexico Agreement on free trade is renewed or renegotiated next year.

Advertisement