Stelco owner says it is in full compliance, seeks Joly talks

Cleveland-Cliffs said Tuesday that its Stelco steel operation in Hamilton is in “full compliance” with all 34 undertakings it gave Ottawa when it bought the company in 2024, and asked to meet Industry Minister Mélanie Joly to discuss bringing laid-off workers back.

The Ohio-based company made the claim in a news release after what it called an “exhaustive review” of its obligations under the Investment Canada Act, CBC News reported. The release came days into the 15-day deadline Joly set for the company to reverse planned layoffs or face legal action.

“Stelco’s performance exceeds the commitments that were made at the time of the acquisition,” the company said, adding that this includes its employment undertakings.

Cleveland-Cliffs said it asked for a meeting with Joly and chairman and CEO Lourenco Goncalves “to discuss a path toward resuming full employment of the 175 workers in Hamilton who have been temporarily laid off.” The company said the minister had not yet responded to the request, despite her publicly stated willingness to sit down.

Goncalves said the company wants to find a solution for Hamilton and its workers as soon as possible and believes “common sense trade policy” will make that happen.

Joly’s demand letter, sent Thursday, said the company is violating its commitments. Cleveland-Cliffs announced late last month that it plans to lay off as many as 500 workers as it idles some steel production at Hamilton-based Stelco, citing U.S. tariffs on steel. The tariffs, imposed under Section 232 of the U.S. Trade Expansion Act, run as high as 50 per cent, CP24 reported.

Joly has rejected that reasoning. “No act of God or change in market conditions can relieve Cleveland-Cliffs of the commitments it made to Canada,” she said in her statement. “Those commitments are not optional.”

Her letter also argues that Goncalves publicly backed U.S. tariffs on Canadian steel, which she says conflicts with a pledge to be a strong advocate for policies that benefit both the American and Canadian steel industries. CP24 reported that the company declined to comment when it first contacted Cleveland-Cliffs about the letter.

The company has also pointed to its results. Goncalves said Oct. 19 that the third quarter was Stelco’s strongest since Cleveland-Cliffs acquired it two years ago, and that the Canadian hot-rolled market had “improved substantially.” We reported on that statement in Stelco owner blames Ottawa for layoffs after best quarter.

The two sides have been trading letters for weeks. Our earlier coverage traces the dispute from the first five-day demand to the 15-day deadline. Joly’s office did not immediately respond in the reports reviewed to the company’s meeting request, and the dispute may end up before a court.

If you find reporting like this useful, consider supporting Canada News Media, an independent Canadian newsroom with no corporate parent.