Carney says Cleveland-Cliffs must honour Stelco commitments amid layoff dispute

Prime Minister Mark Carney has stated that it would be an error for Cleveland-Cliffs Inc. to disregard the commitments they made when acquiring Stelco. During a press conference in Montreal, Carney avoided discussing the potential requirement for the U.S. steelmaker to sell Stelco, emphasizing that a legal process is currently in progress. The Prime Minister's remarks follow Industry Minister Mélanie Joly's intensifying pressure on Stelco to reinstate laid-off employees.

Joly has recently sent Cleveland-Cliffs a letter, categorizing their most recent compliance report as "far from satisfactory." Consequently, she is demanding the immediate recall of the workers who were laid off before she can engage in discussions with Cleveland-Cliffs' chief executive, Lourenco Goncalves. The American company, which took over Stelco in 2024, is obligated by legal agreements under the Investment Canada Act to sustain employment levels for unionized workers and most salaried employees for a five-year period.

On September 28, Stelco announced potential job losses for up to 500 employees due to plans to halt finishing operations at Hamilton Works and curtail activities at its Lake Erie Works in Nanticoke, Ontario. Although Cleveland-Cliffs claims there are presently 175 workers laid off, the situation is attributed to factors such as U.S. tariffs, weak demand for Canadian steel, and competition from imported steel products.

However, Goncalves expressed optimism on Wednesday, stating that he anticipates recalling all 175 workers by Christmas if a strategy to increase the sale of Canadian-made steel to domestic customers proves successful.