Joly threatens ‘full force of the law’ over Cleveland-Cliffs’ Stelco job commitments

Canada's Industry Minister Mélanie Joly has threatened to employ the "full force of the law" in response to Cleveland-Cliffs' proposed job cuts at Stelco Holdings Inc. The threat was issued following Stelco's commitment to maintain jobs when it was purchased by Cleveland-Cliffs, a U.S. company, in 2024. Joly emphasized that Cleveland-Cliffs CEO Lourenco Goncalves has publicly supported U.S. steel tariffs, making it inappropriate for the company to claim its job cuts are beyond their control.

If Stelco fails to submit a plan addressing its commitments to maintain over 1,500 jobs, Ottawa will take enforcement action, according to Joly. The Canadian government's approval of the 2024 takeover of Stelco under the Investment Canada Act was contingent on the company maintaining its union and non-union job commitments. Joly sent a letter to Stelco president Paul Simon on Monday, demanding a plan detailing how the company plans to comply with its promises to Ottawa, including the jobs commitment.

As of now, Ottawa has not received a response from Stelco regarding the letter. Joly also differentiated Stelco's job cuts from recent layoffs and disruptions in the auto sector, stating that Cleveland-Cliffs made legally binding employment commitments when it acquired the steelmaker.