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Stelco’s American parent company says that after “an exhaustive review of its compliance with each of its 34 undertakings,” it had determined it’s in “full compliance” with the obligations it made under the Investment Canada Act when it bought the steelmaker in 2024.
After Cleveland-Cliffs issued a news release Tuesday morning, Canadian Industry Minister Mélanie Joly said the “position of the government is clear. And we have a very strong case.”
Last week, Joly gave Cleveland-Cliffs a 15-day deadline to reverse layoffs before turning to the courts.
Cleveland-Cliffs said late last month that it plans to lay off as many as 500 workers as it idles certain steel production at Hamilton-based Stelco. The planned layoffs will help “ensure the survival” of the company as U.S. tariffs on steel squeeze its sales, it said.
Ron Wells, president of United Steelworkers Local 1005, previously told CBC that 333 layoffs were expected in Hamilton. USW Local 8782 president John McElroy said up to 50 layoffs were expected at the Lake Erie Works in Nanticoke.
Joly, on her way into a cabinet meeting early on Tuesday, said she’s “always willing to sit down” with the company, but the first condition is “a plan to bring back the jobs.”
She said she received a response from Ohio-based Cleveland-Cliffs late last night to the letter she sent on Thursday, which stated that the company is violating its commitments under the Investment Canada Act.
In Tuesday’s release, Cleveland Cliffs said “Stelco’s performance exceeds the commitments that were made at the time of the acquisition. This includes the employment undertakings.”
The company also said that it asked for a meeting with Joly and Cleveland-Cliffs chair-CEO Lourenco Goncalves “to discuss a path toward resuming full employment of the 175 workers in Hamilton who have been temporarily laid off.”
The release said that “notwithstanding her publicly stated willingness to sit down, the minister has not yet responded to this request.”
Goncalves said the company wants “to find a solution for Hamilton and its workers as soon as possible and believes common sense trade policy will make this a reality.”
WATCH | Stelco’s U.S. owner is in ‘double violation’ of its obligations, minister says:
Joly to Stelco: ‘Bring back the jobs’
Industry Minister Mélanie Joly, who took questions Tuesday about a fight over job cuts at a Hamilton steel plant, says Stelco’s U.S. owner is in ‘double violation’ of its obligations under the Investment Canada Act. Cleveland-Cliffs has asserted in a statement it is in ‘full compliance’ with all undertakings.
Strong 3rd-quarter results
Cleveland-Cliffs said last week that Stelco’s third quarter this year was its “strongest” since it acquired the Hamilton plant.
“Third quarter was Stelco’s strongest … since we acquired the company two years ago. The Canadian hot-rolled market has improved substantially,” Goncalves said in a statement on Oct. 19.
During an earnings call that day, Goncalves praised U.S. President Donald Trump’s trade policies, saying they are “helping create the conditions needed for companies like ours to continue investing in [local] communities and expanding domestic production,” despite Stelco citing tariffs as a key reason for economic struggles.
On Tuesday morning, Joly said, “Stelco CEOs and Cleveland Cliffs CEOs have not respected their undertakings. Not only have they not kept the job numbers, but at the same time, they had a clear commitment to make sure that they would be advocating in favour of tariff-free access of Canadian steel through the U.S. And they’ve done completely the contrary, and so that is why also we think that there is a double violation of undertakings.”
Joly has also dismissed the company’s reasoning that the layoffs are necessary for Stelco’s survival.
“Let me be clear: no act of God or change in market conditions can relieve Cleveland-Cliffs of the commitments it made to Canada. Those commitments are not optional,” she said in her statement.
Wells said previously, “If they’re profitable, why’d he shut down our [cold-rolled] and coated [steel] departments?”
The company says Stelco will update its compliance report after the close of the current reporting period on Oct. 31.
WATCH | Conservative MP Ned Kuruc says the government should sue Stelco:
Conservative MP urges government to sue Stelco owner
Conservative MP Ned Kuruc for Hamilton East—Stoney Creek told reporters that ‘if the government has an iron clad contract’ with Stelco’s American owner, Ottawa should take them to court over alleged violation of the company’s agreements. ‘Contracts are put in place to protect our interests and protect the workers,’ Kuruc said. ‘If we don’t enforce them, then what do we have?’