Stellantis resuming work on Windsor battery plant, expected to create 2,500 jobs

After halting construction in May, Stellantis and LG Energy Solution are resuming work on their electric vehicle (EV) battery plant in Windsor, Ontario.

According to news outlets, including CTV News, the companies announced on July 5 that they reached a “binding” financing deal with the federal government as well as the province.

While the specifics of the agreement haven’t been disclosed, Deputy Prime Minister Chrystia Freeland and Minister of Innovation, Science and Industry Francois-Philippe Champagne said in a statement that it’s “good for workers and it is good for Canada.”

“It will create and secure thousands of jobs — both in the auto sector and in related industries across Canada — and will further solidify Canada’s place as a leader in the global electric vehicle supply chain,” the statement reads.

“We look forward to sharing further details with Canadians.”

Stellantis and LG Energy Solution began work on the $5-billion project last year, but stopped construction to negotiate government funding — looking for Canada to match what the U.S. would offer through its Inflation Reduction Act.

The act includes production subsidies for clean technology, including EV batteries.

“We are pleased that the federal government, with the support of the provincial government, came back and met their commitment of levelling the playing field with the [Inflation Reduction Act],” Mark Stewart, Stellantis’ chief operating officer for North America, said in a statement obtained by CBC News.

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The EV battery plant, named NextStar Energy, is expected to open in the first quarter of 2024 and create approximately 2,500 jobs.

If you are thinking about joining the NextStar Energy team in Ontario, here are a few things you need to keep in mind.

Carefully review your new employment contract

Before starting a new job, it’s very likely that you will be asked to sign an employment contract.

However, you shouldn’t accept anything before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP.

Employment contracts often take away key protections that would otherwise be available to non-unionized workers in Ontario.

Employers might attempt to limit your severance package to a few weeks’ pay or add a clause that gives them the ability to make significant changes to your job.

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WATCH: Employment lawyer Lior Samfiru explains the five things workers need to know about employment contracts on an episode of the Employment Law Show.

It’s important to understand that your boss can’t legally force you to accept a new agreement immediately or a few days after receiving it.

Our firm can review the contract and ensure that your workplace rights are properly protected.

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You might have to complete a probationary period

In Ontario, employment contracts often contain a “probation clause” that requires non-unionized workers to complete a probationary period when they start working for a new company.

If your employer doesn’t indicate the existence of a probationary period in your agreement, it won’t be considered “valid” or “in effect.”

While employees are usually put on probation for three months, it’s not uncommon for probationary periods to remain in effect for six months or more.

If you are fired or let go before the probationary period ends, it’s possible that the company could still owe you a severance package. Your entitlements depend on what you agreed to in the employment contract.

However, if you are terminated after a legitimate three-month probationary period, your employer is required to provide you with working notice or pay in lieu of notice (i.e. severance pay).

LEARN MORE
• Employment Law Show: Probationary periods and termination
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Severance pay considerations

Before changing jobs in Ontario, it’s crucial that you consider future severance possibilities.

While severance can be as much as 24 months’ pay, compensation for non-unionized employees is calculated using a number of factors, including:

• Age
• Position at the company
• Length of service
• Ability to find new work

If you quit your current job, you may not be owed severance

In most cases, non-unionized workers in Ontario don’t get a severance package if they resign from their position voluntarily to take up employment elsewhere.

Severance is designed to provide employees with financial support while they look for new work after being fired without cause or let go.

However, if you are forced to leave because of unwanted changes to your job, it’s very likely that you could treat it as a constructive dismissal.

In this situation, the law allows you to resign and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t quit your job until you speak with an experienced employment lawyer at Samfiru Tumarkin LLP.

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• Severance pay in a recession
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Your length of service affects your severance entitlements

When non-unionized employees in Ontario are fired without cause or let go, a key factor in determining how much severance pay they are owed is their length of service.

• Example: If you worked at an automotive company in Kingston for 15 years and decide to take a new job in Windsor that you sought out on your own, you forfeit the severance entitlements you built up with your current employer. As a result, if you are fired without cause or let go shortly after joining the new business, you could receive very little compensation.

However, there are situations where short-service employees are owed significantly more severance pay than they realize.

If your employer fires you without cause, and you have only been with the company for three years or less, don’t accept any severance offer before contacting Samfiru Tumarkin LLP.

As long as you didn’t sign it and send it back to your boss, you have two years from the date of your dismissal to pursue full severance pay.

Our experienced employment lawyers can review the offer and help you secure the compensation that you are legally entitled to.

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Recruited by another company?

In some cases, non-unionized workers in Ontario leave their current job after being actively recruited by another company.

If your new employer took documented steps to entice you to take up employment with them, this is known as inducement.

In the event that the company decides to terminate you shortly after pulling you away from your previous employer, the inducement should be taken into consideration when determining your severance entitlements.

As soon as you receive a severance offer, don’t sign anything before contacting an experienced employment lawyer at Samfiru Tumarkin LLP.

We can confirm that the inducement has been properly factored into your severance package and help you secure the compensation you deserve if it isn’t.

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• Employment Law Show: Things to never do before seeking legal counsel
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Looking to change jobs? Speak to an employment lawyer

Before signing a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

We can help you better understand the terms of the contract and advise you on how best to navigate the situation.