Canada Warns Cleveland-Cliffs Over Planned Stelco Layoffs, Demands Compliance Plan
Canadian Industry Minister Melanie Joly warned Cleveland-Cliffs that it cannot use U.S. tariffs to justify cutting up to 500 jobs at Stelco, citing legally binding commitments made during the company's 2024 acquisition. Joly demanded a compliance plan from Stelco President Paul Simon and threatened enforcement action if the company fails to respond.
Canadian Industry Minister Melanie Joly has warned Cleveland-Cliffs that it cannot use the ongoing trade war to justify cutting jobs at Stelco Holdings Inc., the Hamilton-based steel plant the company acquired in 2024. Cleveland-Cliffs plans to lay off up to 500 workers, citing tariffs and market pressures. 
Joly pushed back against the rationale for the planned layoffs, noting that Cleveland-Cliffs CEO Lourenco Goncalves has publicly supported American steel tariffs. She stated that this public backing contradicts any claim that the job cuts are beyond the company's control.
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. As part of those conditions, Cleveland-Cliffs committed to maintaining more than 1,500 jobs.
To address the potential loss of up to 500 jobs, Minister Joly sent a letter to Stelco president Paul Simon demanding a plan outlining how Cleveland-Cliffs intends to comply with its undertakings, including the commitment to maintain more than 1,500 jobs. As of Wednesday, Ottawa had not received a response from Stelco regarding the demand for a compliance plan. 
The federal government has threatened to pursue enforcement action using the full force of the law if Cleveland-Cliffs does not comply with its binding employment commitments.