Stelco pushes back on Ottawa amid threats of legal action over layoffs
Stelco has reportedly pushed back on accusations it breached its agreement with the federal government, saying they are "false," and it "stands ready to protect its interests."
Stelco, an Ontario-based steel manufacturer, has responded to accusations that it breached its agreement with the federal government over layoffs. The company maintains that the accusations are "false" and that it is "ready to protect its interests." Stelco's letter to Industry Minister Melanie Joly stated that the government had been made aware of the impact of market conditions on the company's business.
Stelco has been facing significant challenges due to U.S. tariffs on Canadian steel imports, which have led to a decline in sales to U.S. customers. The company has laid off up to 500 workers as a result. The Ontario-based steel manufacturer sent a letter to Joly in response to her letter to Cleveland-Cliffs, the U.S.-based company which acquired Stelco in 2024.
Joly responded on social media, stating that the government expects Stelco to meet its legally binding commitments to employees, which were agreed upon under the Investment Canada Act. The union representing the workers facing potential layoffs, USW Local 1005, said it was not consulted and was not aware of the undertaking in the agreement.
Written by urgent.news from Global News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
