Prime Minister Mark Carney says the federal government is prepared to pursue Stelco’s American owner “to the fullest extent of the law” after the steelmaker announced plans to lay off up to 500 workers at its Hamilton, Ont. operations.
Stelco, which has been owned by Ohio-based Cleveland-Cliffs since a $3.4-billion Cdn cash-and-stock acquisition closed in November 2024, directly tied the planned job cuts to the ongoing trade dispute between Canada and the United States. The Trump administration imposed 50 per cent tariffs on foreign steel last year under Section 232 of the Trade Expansion Act, and Canada has responded with its own duties on a range of U.S.-made steel products.
Carney Criticizes Company Leadership
Speaking to reporters in Vancouver on Tuesday, Carney singled out Cleveland-Cliffs CEO Lourenco Goncalves for having applauded the U.S. tariffs on Canadian steel. “Our thoughts are with the workers and the families who have been betrayed by the company,” Carney said, adding that Stelco “made representations, and has legal obligations for employment” when the acquisition was approved. “We intend to use all powers that we have, and pursue them to the fullest extent of the law,” he said.
When Cleveland-Cliffs’ takeover of the Hamilton-based steelmaker was announced, then-Stelco CEO Alan Kestenbaum said the deal “keeps national interests at the forefront and recognizes the importance of the workforce.” Carney said Tuesday he was “very disappointed” by the company’s decision to cut jobs.
Company Points to ‘Unsustainable’ Market
In an internal memo obtained by CBC News, Stelco vice-president of sales Frederic Fafard described the layoffs as “an unfortunate but necessary action to help ensure the survival of Stelco” in what he called a “challenging and unsustainable market.”
Carney said on Tuesday that federal funding remains available to help companies affected by the trade war. Cleveland-Cliffs confirmed in an email to CBC News that Industry Minister Mélanie Joly had already been in contact with Goncalves regarding potential financial support.
Pat Persico, Cleveland-Cliffs’ senior director of corporate communications, said that while some Hamilton operations are being idled, the company expects a significant number of the affected workers to be absorbed into its Lake Erie Works facility in Nanticoke, Ont.
Stelco Layoffs by the Numbers
What Comes Next
Cleveland-Cliffs had not responded, as of Wednesday, to a request for comment on Carney’s remarks about possible legal action. It remains unclear what specific legal mechanisms the federal government might pursue against the company.
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