Industry minister presses Stelco’s U.S. owner to present job-saving plan in 5 days

Industry Minister Mélanie Joly has issued a stern warning to the U.S. owner of Stelco Holdings Inc., Cleveland-Cliffs, demanding a plan to save jobs at the Hamilton-based steel plant within five days, or risk legal action. The government is expressing extreme disappointment over the company's decision to layoff 500 workers due to U.S. tariffs and market pressures.

The federal government approved the 2024 acquisition of Stelco by Cleveland-Cliffs under the Investment Canada Act, which mandates the preservation of union jobs and the majority of non-union positions. Joly emphasized that these conditions remain valid even if "business strategy or market conditions have changed."

Citing trade disruptions, Cleveland-Cliffs CEO Lourenco Goncalves has publicly backed U.S. steel tariffs, deeming them crucial for the U.S. steel industry. Joly has requested a response from the company within five days, threatening legal proceedings if compliance is not met. This may include ordering the company to adhere to its commitments, imposing penalties, or even forcing a sale of the business.

Ron Wells, president of United Steelworkers Local 1005, expressed satisfaction with the government's swift action, noting that Cleveland-Cliffs agreed to maintain at least the same number of unionized workers when acquiring the plant. However, Wells remains skeptical about the company reneging on its five-year commitment to protect jobs.