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Smoke exits Stelco’s steel mill in Hamilton in August. Parent company Cleveland-Cliffs has laid off 175 workers in Canada.Carlos Osorio/Reuters
Industry Minister Mélanie Joly is asking the Competition Bureau to investigate whether comments made by Cleveland-Cliffs Inc. CLF-N chief executive officer Lourenco Goncalves in a recent media interview centred on his motives for buying Canadian steelmaker Stelco Inc. warrant enforcement action.
In a CBC interview on Oct. 27, Mr. Goncalves said he bought Stelco because he couldn’t afford to have it “flooding the market here in the United States to the detriment of my own company.”
In her Friday complaint letter, which was obtained by The Globe and Mail, Ms. Joly asked acting competition commissioner Jeanne Pratt to investigate the matter.
“This type of conduct is highly questionable and may be reviewable under the Competition Act,” she said.
It is unclear what steps the Competition Bureau can take. Ms. Joly’s letter said the regulator reviewed the Stelco acquisition in 2024 and issued a “no action” letter.
“At minimum, Mr. Goncalves’ statements indicate his company’s disregard for the importance of fair competition in the marketplace, and the important role that competition policy plays in delivering greater choice and affordability for consumers,” Ms. Joly said in her letter.
The letter is the latest move by the federal government to ratchet up its pressure on Cliffs to recall laid-off steel workers in Hamilton.
In late September, Stelco announced it was cutting up to 500 jobs in Canada because of its inability to make money in its galvanized steel business.
Ms. Joly has alleged that Cliffs is in violation of legally-binding commitments it made at the time of the Stelco acquisition around specific employment levels. She has warned the company that the government may sue Cliffs, which could force it to pay financial penalties or divest Stelco.
Cliffs has classified the layoffs as “temporary” and has reduced its estimates for the total number of workers that could be laid off. Mr. Goncalves said last week that 175 people have been laid off so far in Canada, and no more cuts are planned.