The union representing laid-off Stelco workers in Ontario says the company’s U.S. parent, Cleveland-Cliffs, is being “disingenuous and contradictory” in pointing to the Canada-U.S. trade war as the reason for cutting up to 500 jobs.
United Steelworkers Locals 1005 and 8782, which represent Stelco employees at plants in Hamilton and Nanticoke, Ont., said in a joint statement that Cleveland-Cliffs chief executive Lourenco Goncalves has publicly supported U.S. tariffs on Canadian steel. Local presidents Ron Wells and John McElroy said the company is trying to “shift blame” for its own decisions onto broader trade tensions and market conditions, accusing Cleveland-Cliffs of “obscuring their own role in manufacturing this crisis.” They cited Goncalves’ own public remarks that his “fingerprints” are on the 50 per cent tariffs applied to Canadian steel.
Investment Canada Act Commitments at Issue
When Cleveland-Cliffs acquired Stelco in 2024, it made legally binding commitments under the Investment Canada Act, including a pledge to maintain at least the same number of unionized workers for five years. Under the act’s guidelines, investors are generally not held responsible for falling short of such commitments if non-compliance stems from factors outside their control. The union argues that exception should not apply here, since Goncalves has publicly claimed credit for influencing the 50 per cent tariff rate.
Stelco said earlier in the week that idling finishing operations at its Hamilton plant was a response to weaker demand and ongoing pressure from steel imports, adding that total steel tonnage produced would not decline and that a “significant number” of affected Hamilton workers would be offered positions at the Lake Erie plant in Nanticoke. However, Wells said only about 40 of the laid-off Hamilton workers have actually been offered a job in Nanticoke. The company did not immediately respond to a request for comment on the union’s statement.
Ottawa Weighs Its Options
The union is pressing the federal government to enforce the Investment Canada Act against Cleveland-Cliffs, saying the company has violated its obligations. “With the announced layoffs, Cleveland-Cliffs have violated the Investment Canada Act and have betrayed the Canadian people,” Wells and McElroy said, calling on Ottawa to take “immediate steps” to prevent the company from breaching its commitments “with impunity.”
Industry Minister Mélanie Joly said the government is evaluating all of its options in response. “Everything is on the table because there were clear commitments that were made under the Investment Canada Act,” she said, adding that the company has not abided by them. Prime Minister Mark Carney also addressed the layoffs at a news conference, saying he was disappointed and that workers had been “betrayed by the company.” Carney said the government intends “to use all powers that we have and pursue them to the fullest extent of the law.”
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