Canada’s Minister of Industry stated on Wednesday that Stelco Holdings Inc. cannot cite the trade war as a reason for cutting jobs that were guaranteed when the company purchased the steel plant in Hamilton. This comes especially in light of the CEO of its U.S. parent company openly supporting steel tariffs.
Melanie Joly emphasized that since the head of Cleveland-Cliffs in the U.S. has endorsed steel tariffs, the company cannot attribute its decision to lay off up to 500 workers solely to tariffs and market pressures.
“He has expressed support for U.S. tariffs on steel,” Joly said, underscoring that the company’s actions cannot be deemed as beyond its control.
If Stelco fails to provide a detailed plan to fulfill all its commitments, including maintaining over 1,500 jobs as agreed upon, the federal government will take enforcement measures, Joly warned.
“They must adhere to the terms,” she stated. “Otherwise, we will enforce the law to the fullest extent.”
Approval for U.S.-based Cleveland-Cliffs to acquire Stelco was granted by Canada in 2024 under the Investment Canada Act.
Joly noted that Canada’s authorization of the acquisition was contingent on the new owner preserving the existing union jobs and a majority of non-union positions.
In a letter sent to Stelco’s president, Paul Simon, on Monday, Joly requested a comprehensive plan outlining how Cleveland-Cliffs plans to fulfill all commitments made to Ottawa during the acquisition, including job guarantees.
As of now, there has been no response from Stelco to the letter, according to Joly.
Joly also made a distinction between Stelco’s announced job cuts and recent layoffs and disruptions in the auto industry, highlighting that Cleveland-Cliffs assumed legally binding job commitments when acquiring the steelmaker.
“These commitments are legally enforceable.”
