Joly gives Stelco owner 15 days to comply or face court

Industry Minister Mélanie Joly gave Cleveland-Cliffs 15 days on Thursday, Oct. 22, 2026, to address alleged violations of the binding commitments it made when it bought Ontario steelmaker Stelco, or face possible legal action that could force it to sell.

In an 11-page demand letter, Joly accuses the Ohio-based company of failing to honour six commitments it made under the Investment Canada Act when it acquired Stelco in 2024, including employment guarantees, The Canadian Press reported.

The company must address the alleged violations, prove it has not broken its commitments or explain why it has failed to meet them, the letter says. If it does not comply, the minister may apply to a superior court under section 40 of the act, CBC News reported. Remedies could include monetary penalties and an order requiring Cleveland-Cliffs to divest control of Stelco.

“Let me be clear: no act of god or change in market conditions can relieve Cleveland-Cliffs of the commitments it made to Canada. Those commitments are not optional,” Joly said in a statement.

“I remain prepared to sit down with Cleveland-Cliffs to find a solution. But our bottom line is clear: protect Canadian jobs, defend our steel industry and ensure that commitments made to Canada are respected,” she said.

The letter discloses the exact job commitments Cleveland-Cliffs agreed to in 2024, including keeping an annual average of at least 1,766 full-time-equivalent unionized workers and 603 full-time-equivalent salaried workers.

Joly also accuses the company of advocating for U.S. tariffs on Canadian steel despite promising to support Canada’s steel industry, then using those same tariffs to justify layoffs.

Cleveland-Cliffs announced on Sept. 28 that it plans to lay off up to 500 workers at Stelco’s Hamilton Works and Lake Erie Works in Ontario, citing U.S. tariffs and difficult market conditions. Joly had earlier warned the company of a forced sale.

The company has rejected Ottawa’s position. “Your representation that Stelco’s planned layoffs cause it to breach its undertakings is false,” Stelco president and general counsel Paul Simon wrote to Joly earlier this month, according to CBC News. Cleveland-Cliffs also said this week that Stelco just had its strongest quarter since the 2024 takeover.

The demand letter came a day after Prime Minister Mark Carney and Ontario Premier Doug Ford announced an $8.7-billion plan that includes a new fund for steelmakers.

It would not be the first court fight over Stelco jobs. Ottawa sued the company’s previous owner, U.S. Steel, over job protection in 2009, and the case was settled out of court in 2011.

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With files from The Canadian Press and CBC News.