Canada’s industry minister is warning Cleveland-Cliffs that Ottawa is prepared to use the law to enforce employment commitments made when the U.S.-based company purchased Stelco in 2024.
Mélanie Joly says Cleveland-Cliffs cannot simply blame U.S. steel tariffs and market pressures for its plan to lay off up to 500 workers at Stelco’s Hamilton operations.
She points out that Cleveland-Cliffs CEO Lourenco Goncalves has publicly supported U.S. steel tariffs, arguing that makes it difficult for the company to characterize the tariffs as an unforeseen event beyond its control.
Ottawa approved Cleveland-Cliffs’ purchase of Stelco under the Investment Canada Act, with the approval tied to commitments involving employment levels, including maintaining more than 1,500 jobs.
Joly sent a letter to Stelco president Paul Simon demanding a plan outlining how the company will meet all of its commitments, including its employment obligations.
Joly says Ottawa had not received a response as of Wednesday and warned that enforcement action could follow if Cleveland-Cliffs does not comply.
She says the government will use the “full force of the law” to enforce the commitments, which she described as legally binding.
The planned cuts have also drawn criticism from the United Steelworkers, which has argued that Cleveland-Cliffs is contradicting its own position by blaming tariffs while its CEO has supported them.
The union is calling on Ottawa to enforce the commitments made when Stelco was acquired.
