Industry Minister Mélanie Joly has issued a 15-day ultimatum to the American parent company of Stelco, based in Hamilton, demanding a reversal of recent layoffs or face legal action. In a formal notice sent to Cleveland-Cliffs, headquartered in Ohio, Joly asserts that the company is breaching its obligations under the Investment Canada Act. The letter, obtained by Radio-Canada, states that failure to comply could result in the Minister seeking judicial intervention under section 40 of the Act.
Joly has emphasized that potential legal action could entail imposing financial penalties on Cleveland-Cliffs and potentially requiring the company to divest from Stelco. Despite the threat of legal recourse, Joly expressed willingness to engage in discussions with Cleveland-Cliffs to reach a resolution while underscoring the paramount importance of safeguarding Canadian jobs, supporting the steel industry, and upholding commitments made to Canada.
Cleveland-Cliffs recently announced plans to lay off up to 500 employees as it halts specific steel production operations at Stelco, actions that the federal government deems as violating contractual obligations established during the company’s acquisition in 2024. The government has highlighted that Cleveland-Cliffs’ acquisition of Stelco included pledges to maintain a workforce comprising “at least the same number of unionized employees and the majority of non-unionized employees” as in 2024 throughout 2029.
The company defended the planned layoffs as necessary for its sustainability due to challenges posed by U.S. steel tariffs impacting its sales. Contrary to this justification, Joly dismissed external factors as excuses, emphasizing that Cleveland-Cliffs must uphold its commitments to Canada, which are deemed non-negotiable.
Photo: Industry Minister Mélanie Joly addressing media inquiries in Ottawa on October 14.