Canada’s industry minister Mélanie Joly said Wednesday that Stelco Holdings Inc. cannot use the ongoing trade war with the United States to justify cutting jobs it committed to when its U.S. parent company, Cleveland-Cliffs, acquired the Hamilton-based steelmaker.
Joly told reporters that Cleveland-Cliffs CEO Lourenco Goncalves has publicly supported U.S. steel tariffs, which she said undercuts the company’s position that its plan to lay off up to 500 workers is simply an unavoidable consequence of tariffs and market pressures.
“He’s in favour of these U.S. tariffs against steel,” Joly said, referring to Goncalves. “They cannot say that this is now an act of God or force majeure.”
Ottawa Demands a Compliance Plan
Joly said that if Stelco does not respond to the federal government’s demand for a plan showing how it will meet all of its commitments — including maintaining more than 1,500 jobs — Ottawa will pursue enforcement action.
“They need to comply,” she said. “If not, we will use the full force of the law.”
Canada approved Cleveland-Cliffs’ purchase of Stelco in 2024 under the Investment Canada Act. Joly said that approval was contingent on the new owner maintaining the number of union jobs and the majority of non-union positions at the plant.
She said she sent a letter to Stelco president Paul Simon on Monday demanding a plan outlining how Cleveland-Cliffs intends to comply with all of the undertakings it made to Ottawa when it acquired Stelco, including the jobs commitment. As of Wednesday, Ottawa had not yet received a response from Stelco, according to Joly.
Distinguishing Stelco From Auto Sector Layoffs
Joly drew a distinction between Stelco’s planned job cuts and recent layoffs and plant disruptions in the auto sector, saying Cleveland-Cliffs made legally binding employment commitments when it acquired the steelmaker that do not apply in the same way to automakers.
“These obligations are binding,” she said.
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