Tories push steel plan as deadline passes for Stelco layoffs
"Are we simply going to wait until these effects trickle downstream further into the supply chain, and we're reading or hearing about more job losses?" said Flamborough-Glanbrook-Brant North MP Dan Muys
Ottawa is threatening legal action in response to Stelco's announcement of layoffs that may affect up to 500 workers. Industry Minister Mélanie Joly sent a letter to the company on October 5, demanding an explanation for the layoffs, which Joly claimed breached commitments under the Investment Canada Act. Stelco responded on October 9, denying any wrongdoing and stating that the accusations from the federal government are "false."
The Canadian steel manufacturer has cited U.S. tariffs and market pressures as the reasons for the layoffs, claiming that the market dynamics surrounding the tariffs do not excuse the company from its commitments. Cleveland-Cliffs CEO Lourenco Goncalves, who acquired Stelco in 2024, has publicly supported U.S. steel tariffs. The government argues that Cleveland-Cliffs made commitments when acquiring the company, including preserving jobs and the Stelco name, and maintaining and expanding Canadian operations.
Business lawyer Nassira El Hadri said the government is now asking for a plan outlining how Stelco will comply with its commitments, which she considers to be binding. The dispute could end up in court if Stelco responds by simply reiterating that the layoffs are necessary due to U.S. tariffs.
Written by urgent.news from Global News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
