Joly warns Stelco owner to protect jobs or face forced sale of Canadian assets

Industry Minister Melanie Joly believes the dispute between the federal government and Stelco will be resolved in "days," according to a statement on Friday. The Canadian steel manufacturer, based in Ontario, recently announced that U.S. tariffs compelled it to shift steel production to its Lake Erie Works plant in Haldimand and cease operations at its Hamilton facility.

This move led to the termination of employment for numerous workers as some were offered transfers. Joly warned Stelco that it had breached its commitments under the Investment Canada Act, and as a result, the company could face financial penalties and a potential forced divestiture, which would force Stelco to sell all its Canadian assets.

Approximately 90 employees were notified of layoffs last week, with the initial layoffs taking effect on Sunday. The remainder of the layoffs are anticipated to unfold over the course of three weeks.