The ongoing dispute between Ottawa and Stelco’s American owner is showing no signs of slowing down, with Cleveland-Cliffs insisting it has fulfilled its obligations to Canada despite planned layoffs at its Ontario operations.
The issue carries particular significance for Norfolk County, where Stelco operates its Lake Erie Works facility in Nanticoke.
Cleveland-Cliffs announced last month that it planned to lay off as many as 500 workers as it idles portions of its steel production operations, citing economic pressures associated with American tariffs.
Union representatives previously indicated that approximately 333 layoffs were expected in Hamilton, while as many as 50 could affect workers at Lake Erie Works.
The announcement has led to a growing disagreement between the company and the federal government over commitments made when Cleveland-Cliffs purchased Stelco in 2024.
In a statement released Tuesday, Cleveland-Cliffs said it had conducted an exhaustive review of all 34 undertakings associated with the acquisition under the Investment Canada Act.
The company maintains that it is in full compliance with those obligations, including commitments related to employment.
Cleveland-Cliffs also argued that Stelco’s performance has exceeded the commitments established when the purchase was completed.
However, federal Industry Minister Mélanie Joly strongly disagrees.
Speaking Tuesday, Joly maintained that Ottawa has a strong case against the company and accused Cleveland-Cliffs of failing to meet its obligations.
According to Joly, the concerns extend beyond employment numbers.
She also accused the company of failing to honour commitments related to advocating for tariff-free access for Canadian steel entering the United States.
Last week, Joly gave Cleveland-Cliffs a 15-day deadline to reverse the layoffs before the federal government considers pursuing legal action.
The minister has also rejected the company’s argument that changing market conditions justify its decisions.
Cleveland-Cliffs, meanwhile, says it has requested a meeting between Joly and company chair and CEO Lourenco Goncalves to discuss a path toward restoring full employment for 175 workers who have already been temporarily laid off in Hamilton.
The company says it has not yet received a response to that meeting request.
Goncalves has maintained that the company wants to find a solution for Hamilton and its workers, while pointing to trade policy as a key factor in restoring operations.
The dispute also comes amid questions about Stelco’s financial performance.
During a recent earnings announcement, Cleveland-Cliffs described Stelco’s third quarter as its strongest since the American company completed the acquisition.
Goncalves also said the Canadian hot-rolled steel market had improved substantially.
For Ottawa, the central issue remains whether Cleveland-Cliffs is meeting the legally binding commitments it made when acquiring the Canadian steelmaker.
For workers in Hamilton and Nanticoke, the disagreement comes as uncertainty continues over employment and the future of operations.
Cleveland-Cliffs says Stelco will update its compliance report following the close of the current reporting period on October 31.
