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Ottawa Presses Cleveland-Cliffs Over Planned Stelco Layoffs
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Federal Pressure on Cleveland-Cliffs
Industry Minister Mélanie Joly sent a letter to Stelco president Paul Simon demanding a plan to retain the 500 workers the Ohio-based Cleveland-Cliffs intends to lay off at the Hamilton Works plant. The minister warned that failure to comply within five business days could trigger legal action in superior court, including orders to enforce the original employment undertakings or even force a divestiture.
Background: Investment Canada Act Commitments
Canada approved Cleveland-Cliffs’ $3.4-billion cash-and-stock acquisition of Stelco in 2024 under the Investment Canada Act. The approval was conditional on the new owner maintaining at least the same number of unionized employees and the vast majority of non-union positions for five years. The Act also allows the minister to demand explanations and, if unsatisfied, to refer the matter to the attorney general for court proceedings.
Official Statements & Responses
Joly emphasized that “the Government of Canada takes compliance with undertakings seriously,” and noted that Ontario’s minister of labour, immigration, training and skills development, Trevor Jones, announced a provincial contribution of more than $200,000 to the Canada-Ontario Workforce Tariff Response, a program aimed at upskilling 75 affected workers and job-seekers.
Labor Union Opposition
He warned that the layoffs would breach the five-year employment pledge embedded in the acquisition agreement.
Provincial Support for Workers
Ontario’s funding seeks to mitigate the impact of the layoffs by helping workers acquire new skills for in-demand careers. The province framed the investment as a counter-measure to U.S. tariff policies that have strained the Canadian steel sector, echoing broader concerns about the “America first” approach championed by Cleveland-Cliffs CEO Lourenço Gonçalves.