Ontario NDP urges Ford, Carney to buy Stelco as firm eyes layoffs

The Ontario NDP is urging Premier Doug Ford and Prime Minister Mark Carney to use government funds to purchase Stelco, a Hamilton-based steel company that is laying off hundreds of workers. Stelco, owned by U.S.-based Cleveland Cliffs, is facing production challenges and can no longer maintain its Canadian sales. Ontario NDP Leader Marit Stiles says public ownership of Stelco is the only way to save around 350 jobs.

Federal NDP Leader Avi Lewis has echoed the NDP's proposal, calling for nationalization of the firm. Lewis argues that nationalizing Stelco is necessary to protect over 500 workers in Hamilton from layoffs. The NDP believes that buying Stelco would not only preserve jobs but also provide opportunities for new infrastructure projects that prioritize Canadian steel.

Premier Ford previously expressed support for Cleveland Cliffs' tariffs, which he deemed "bold action" to bolster the American steel industry. When asked about the possibility of the government stepping in, Ford's government insiders noted that the comment was made casually, but acknowledged the steel industry's challenges due to recent U.S. tariffs.

The federal government could potentially lead this initiative, but would need to consider its options after the upcoming U.S. mid-term elections, which may alter political dynamics in Washington D.C. While the NDP doesn't specify a purchase price for Stelco, Stiles acknowledges the proposal as ambitious and reliant on federal backing.

United Steelworkers, representing more than 225,000 workers across Canada, have also advocated for public ownership as the best course of action. In 2024, Canada had approved Cleveland-Cliffs' acquisition of Stelco under the Investment Canada Act, which requires the new owner to uphold union job levels and majority non-union positions. Stelco has maintained compliance with these terms in its response to federal Minister Mélanie Joly.