The CEO of the American firm owning Stelco in Hamilton is ready to challenge the Canadian government in court to defend Stelco’s decision to lay off many employees. Cleveland-Cliffs CEO, Lourenco Goncalves, contested the government’s claim that the company is breaching employment commitments under the Investment Canada Act.
According to Industry Minister Mélanie Joly, Cleveland-Cliffs’ acquisition of Stelco in 2024 included promises to maintain the same number of unionized and most non-unionized employees until 2029. Goncalves clarified that the contract does not mandate a specific daily employment level, and he would not have agreed if that was a condition.
Goncalves reiterated that the job cuts are temporary until a trade agreement is reached between Canada and the U.S., with intentions to reinstate the positions. He also expressed openness to selling the company and supported U.S. steel tariffs, despite Stelco attributing its financial challenges to these tariffs.
In response to an ultimatum from the Canadian government to present a plan to safeguard up to 500 jobs at the Hamilton plant, Stelco Inc. affirmed their decision to proceed with the layoffs, refuting the government’s accusation of breaching commitments.
Stelco emphasized that external factors, such as President Trump’s 50% steel tariffs, have influenced their situation. Although Goncalves backs tariffs against Canada, citing their positive impact on the U.S. steel industry, he also indicated willingness to sell the company for the right offer while aiming to maintain a positive presence in Canada.
Regarding the ongoing layoffs, United Steelworkers Local 1005 President Ron Wells disclosed that the process has commenced and is expected to span three weeks, affecting around 300 to 350 employees in Hamilton and additional workers at Stelco’s Lake Erie Works in Nanticoke, Ontario. Wells expressed hope that the federal government holds Cleveland-Cliffs accountable and ensures compliance with commitments.