Canada Warns Stelco Against Using Tariffs to Justify 500 Layoffs
Industry Minister Mélanie Joly says Stelco Holdings Inc. cannot use trade war tariffs as an excuse to cut up to 500 jobs, citing legally binding commitments made when Cleveland-Cliffs acquired the Hamilton-based steelmaker in 2024.
Canadian Industry Minister Mélanie Joly has warned Stelco Holdings Inc. that it cannot use the ongoing trade war to justify cutting jobs it committed to maintaining when its Hamilton, Ont., steel plant was acquired by Cleveland-Cliffs.
Cleveland-Cliffs plans to lay off up to 500 workers, citing tariffs and market pressures. However, Joly noted that Cleveland-Cliffs CEO Lourenco Goncalves has publicly supported U.S. steel tariffs. She argued this prevents the company from characterizing the layoffs as beyond its control or an act of God.
Canada approved Cleveland-Cliffs' purchase of Stelco in 2024 under the Investment Canada Act. That approval was contingent on the company maintaining union jobs and the majority of non-union positions, amounting to a commitment to preserve more than 1,500 jobs.
On Monday, Joly sent a letter to Stelco President Paul Simon demanding a compliance plan outlining how the company will meet all of its obligations. At the time of reporting, Ottawa had not yet received a response.
Joly warned that the federal government will pursue enforcement action and use the full force of the law if Stelco fails to comply with its commitments.