Stelco Recalls 175 Laid-Off Workers, Ending Dispute With Canadian Government
Hamilton-based steelmaker Stelco Inc. announced it will recall 175 laid-off workers effective December 1, citing sufficient customer demand. The decision resolves a dispute with the federal government over alleged violations of employment commitments made during Cleveland-Cliffs' 2024 acquisition of the company.
Stelco Inc., a Hamilton-based steelmaker owned by Cleveland-Cliffs Inc., announced on Friday via a news release that it will recall 175 laid-off workers effective December 1. The company cited sufficient demand from customers as the reason for bringing back all affected employees.
All impacted employees will receive retroactive pay for any wages missed while off the job, according to the announcement. Stelco noted that restarting operations will take several weeks. Stelco President Paul Simon thanked customers and workers in a statement regarding the recall.
The recall follows layoffs originally announced on September 28, when Stelco said up to 500 workers at its Hamilton and Nanticoke plants would be let go. The Canadian federal government alleged that those layoffs violated legally binding employment commitments made by Cleveland-Cliffs when it acquired Stelco in 2024.
Industry Minister Mélanie Joly warned Cleveland-Cliffs CEO Lourenco Goncalves that the company risked lawsuits, financial penalties, or forced divestiture of Stelco if it did not recall the workers. The recall effectively ends the face-off between Ottawa and Cleveland-Cliffs regarding employment levels and avoids potential legal action or forced divestiture.
Cleveland-Cliffs CEO Lourenco Goncalves stated he bought Stelco to stop it from undercutting his U.S. business by flooding the market. While Canada implemented a 50-per-cent tariff on steel imports above a certain level last year, Cleveland-Cliffs argued this measure was insufficient for galvanized steel.