The head of the American corporation that controls Stelco, a steel manufacturer in Hamilton, stated his willingness to go to court against the Canadian government to defend Stelco’s decision to lay off numerous employees. Cleveland-Cliffs CEO Lourenco Goncalves, speaking on CBC’s Rosemary Barton Live, opposed the government’s claim that the company is breaching employment obligations under the Investment Canada Act.
Industry Minister Mélanie Joly asserted that Cleveland-Cliffs’ acquisition of Stelco in 2024 involved commitments to maintain current levels of unionized and non-unionized employees until 2029. Goncalves clarified that the contract does not mandate a specific daily employment level and emphasized that the layoffs are temporary until a trade agreement is reached between Canada and the U.S.
Goncalves also indicated a willingness to sell the company and expressed support for U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges to tariffs. Joly issued an ultimatum to Cleveland-Cliffs, urging a plan to save up to 500 jobs at the Hamilton plant or face legal consequences, a sentiment echoed by Prime Minister Mark Carney.
Stelco responded to Joly’s ultimatum by confirming the layoffs and refuting the government’s assertion of a breach in obligations. The company cited external factors, including U.S. President Donald Trump’s tariffs, as contributing to its current situation. Goncalves reiterated his endorsement of steel tariffs and willingness to sell the company for a good offer while maintaining a commitment to Canada.
Layoffs have commenced at Stelco, prompting concerns from employees like Jordan Williams and union representatives like Ron Wells. Williams called for a concrete plan to safeguard jobs and revive operations, emphasizing the broader impact on the community. Wells disclosed ongoing layoffs in Hamilton and Nanticoke, criticizing Cleveland-Cliffs’ efforts to portray tariff policies positively before U.S. elections.