Ottawa gives Stelco owner 15 days to address alleged violations or face legal action
The company faces court action and possible divestiture if it does not reverse layoffs of up to 500 workers, Joly said.
- On Thursday, Industry Minister Melanie Joly issued a 15-day deadline for Ohio-based Cleveland-Cliffs to reverse planned layoffs of up to 500 workers at Hamilton-based Stelco, warning the government may pursue legal action.
- Cleveland-Cliffs acquired Stelco in 2024 under "binding commitments" to maintain specific employment levels, including at least 1,766 unionized and 603 salaried workers, despite the company's claims that layoffs are necessary to "ensure the survival" of the business.
- Joly's letter accuses the company of failing to meet employment undertakings and criticized CEO Lourenco Goncalves for advocating for U.S. tariffs on Canadian steel, writing that potential trade actions were foreseeable in 2024.
- Stelco has maintained they have not broken the agreement, but Prime Minister Mark Carney stated the company "betrayed" its Canadian work force, signaling the government is prepared to escalate through the courts.
- In a 2025 interview, Goncalves claimed he was "very happy" with 50 percent tariffs on steel, taking credit for influencing them—a position that complicates the company's current argument that tariffs justify violating the legally binding job commitments to Ottawa.
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46 Articles
Toronto, Canada, Oct 22 (EFE).- The Canadian government gave the US Cleveland-Cliffs a 15-day deadline on Thursday to reverse the dismissal of 500 workers from the Stelco steel industry and warned that it could go to court to demand fines and even force the sale of its assets in Canada. [...] Canada’s entry threatens to force the sale of Stelco if it does not reverse 500 layoffs in 15 days was first published in HolaNews.
Stelco Owner Has 15 Days to Reverse Layoffs Before Ottawa Takes Legal Action: Joly
Minister of Industry Melanie Joly responds to questions from journalists before a meeting of the Liberal caucus, on Parliament Hill in Ottawa, on Oct. 7, 2026. (The Canadian Press/Justin Tang)
The federal government takes notice of Stelco's parent company, Cleveland-Cliffs, to cancel its decision to lay off 500 workers.
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