Canada’s Minister of Industry stated on Wednesday that Stelco Holdings Inc. cannot use the trade war as a reason to justify cutting jobs at the Hamilton-based steel plant, especially when the CEO of its U.S. parent company has openly supported steel tariffs. Melanie Joly emphasized that Cleveland-Cliffs’ CEO backing steel tariffs undermines the company’s decision to lay off around 500 employees due to tariffs and market pressures, as it is not beyond their control.
Joly highlighted that the CEO’s endorsement of U.S. steel tariffs contradicts any claim of unforeseeable circumstances leading to the job cuts. She warned that if Stelco does not provide a detailed plan to fulfill all its commitments, including maintaining over 1,500 jobs as agreed upon, the Canadian government will take enforcement measures.
The approval for U.S.-based Cleveland-Cliffs to acquire Stelco in 2024 was granted under the Investment Canada Act, with the condition that the new owner would uphold the existing union and non-union job levels. Joly stated that she has formally requested a compliance plan from Stelco, but has not yet received a response.
She clarified that the commitments made by Cleveland-Cliffs upon acquiring Stelco are legally binding, distinguishing the situation from recent workforce reductions in the auto industry. Joly reiterated the importance of Stelco fulfilling its obligations as agreed upon during the acquisition process.