Canada’s Industry Minister Mélanie Joly stated Wednesday that Stelco Holdings Inc. cannot utilize ongoing trade disputes to justify reducing jobs it legally promised to maintain when acquiring the Hamilton-based steel facility. Joly asserted that the CEO of U.S. parent company Cleveland-Cliffs publicly endorsed steel tariffs and therefore cannot label the planned layoffs of up to 500 workers as an uncontrollable event or act of God. She pointed out that executive Lourenco Goncalves has openly supported American steel tariffs, rendering the current blame on market pressures contradictory. Joly warned that if the corporation fails to answer Ottawa’s demand for a comprehensive plan demonstrating how it will uphold commitments to keep over 1,500 jobs, the federal government will pursue legal enforcement. The acquisition of Stelco by Cleveland-Cliffs was approved in 2024 under the Investment Canada Act with explicit conditions requiring the preservation of union and non-union positions. On Monday, Joly dispatched a letter to Stelco president Paul Simon demanding compliance with these binding undertakings. Ottawa has not yet received a reply. Joly also separated Stelco’s situation from recent challenges in the automotive sector, emphasizing that Cleveland-Cliffs entered into legally enforceable employment agreements during the takeover process.
Source: cbc.ca
