Canada Demands Cleveland-Cliffs Present Plan to Restore Stelco Jobs Before Meeting
Industry Minister Mélanie Joly says she will meet with Cleveland-Cliffs CEO Lourenco Goncalves only if the U.S. steelmaker provides a concrete plan and timeline to restore jobs at Stelco, amid allegations that the company violated employment commitments made during its 2024 acquisition.
Canadian Industry Minister Mélanie Joly has set a condition for meeting with Cleveland-Cliffs Inc. CEO Lourenco Goncalves, stating she is willing to sit down with him only if the U.S. steelmaker first provides a concrete plan and timeline to restore jobs at Stelco Inc.
The dispute stems from Stelco's Sept. 28 announcement of layoffs affecting up to 500 workers in Hamilton and Nanticoke, Ontario. On Oct. 23, Cleveland-Cliffs requested a meeting with Joly to discuss resuming full employment for 175 temporarily laid-off workers in Hamilton.
The Canadian government alleges that Cleveland-Cliffs failed to honor six binding commitments made during its 2024 acquisition of Stelco. These undertakings include maintaining job numbers and advocating for tariff-free access for Canadian steel to the United States. In response, Minister Joly warned that the government could pursue legal action, seek financial penalties, or require the sale of Stelco if the alleged violations are not addressed within 15 days.
Cleveland-Cliffs maintains it is in full compliance with all 34 total undertakings tied to the Investment Canada Act review. The company asserts it meets acquisition promises by reporting an expected average annual unionized employment of at least 1,879, which exceeds the required minimum level of 1,766. It also reports an expected average salaried employment of 627 against a required minimum of 603. The company argues that compliance should be measured based on average annual employment levels over a 12-month period, while the Canadian government contends the firm has failed to maintain daily employment stability and honor specific commitments regarding tariff advocacy.
Goncalves stated that Cleveland-Cliffs plans to report its annual job figures for Stelco to Ottawa in November and believes the company will be shown to be in compliance. The standoff threatens hundreds of jobs in Ontario steel operations and risks escalating into a broader trade and regulatory dispute between Canada and the Ohio-based manufacturer.