Cleveland-Cliffs CEO Says Laid-Off Stelco Workers Could Return by Christmas, Rejects Sale of Company
Cleveland-Cliffs CEO Lourenco Goncalves stated that up to 175 laid-off Stelco workers in Ontario could be recalled by Christmas if Canadian demand for the company's steel increases. The remarks come amid a dispute with the Canadian government over alleged violations of Investment Canada Act commitments and suggestions that potential buyers exist for Stelco.
Cleveland-Cliffs Inc. chief executive Lourenco Goncalves said that laid-off Ontario steel workers could return to their jobs by Christmas, depending on whether Canadian consumers increase their purchases of Stelco steel. Goncalves stated that increased consumer demand could result in Cliffs recalling 175 people who have lost their jobs.
Stelco announced late last month that it was cutting up to 500 jobs in Canada, but Goncalves clarified on Wednesday that 175 is the maximum number that will be laid off in Canada. The layoffs affect plants in Hamilton and Nanticoke, Ont., which were announced on Sept. 28. Prime Minister Mark Carney said Cliffs had "betrayed" its workforce following the announcement.
When Cleveland-Cliffs acquired Stelco in 2024, it promised to maintain employment at about the same level for a period of five years. Cliffs expects to report to Ottawa that Stelco’s annual employment numbers for both unionized and non-unionized workforces will be well above the minimum levels required.
Industry Minister Mélanie Joly has stated multiple times that Ohio-based Cliffs could be forced to divest Stelco because of alleged violations of its Investment Canada Act commitments. Joly said she knew of potential buyers interested in acquiring Stelco, including publicly traded companies, though she declined to name them due to confidentiality.
Goncalves pushed back against those claims. He wrote in an email that "Stelco is not for sale" and criticized Joly for openly soliciting buyers for a company the government does not own. Goncalves stated he would not talk to any buyers, real or imaginary, now or within the next calendar year, but would consider selling after demonstrating one year of higher production numbers and bringing all 175 workers back.
Goncalves blamed the closure of Stelco’s galvanized business on 50-per-cent tariffs imposed by Washington, claiming they make it impossible for the company to compete in the U.S.
Ron Wells, president of United Steelworkers Local 1005, said Ottawa is unlikely to bend to Cliffs' demands regarding trade barriers because it could set a dangerous precedent.