The chief executive officer (CEO) of the American corporation that controls Stelco, a steel manufacturer in Hamilton, is ready to engage in a legal battle with the Canadian government to uphold Stelco’s decision to lay off numerous employees. During an appearance on CBC’s “Rosemary Barton Live,” Lourenco Goncalves, the CEO of Cleveland-Cliffs, refuted the government’s claim that the company is breaching employment commitments specified under the Investment Canada Act.
According to Industry Minister Mélanie Joly, Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to maintain the same number of unionized and non-unionized workers until 2029. Goncalves stated that there is no contractual requirement to sustain employment levels daily for the entire five-year period, and he would not have agreed to such terms imposed by the Canadian government.
Goncalves reiterated that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., and the jobs will be reinstated. He also expressed willingness to sell the company and voiced support for U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges to tariffs.
In response to the ultimatum from the Canadian government, Stelco affirmed its intention to proceed with the layoffs, dismissing claims of breaching commitments as unfounded. The company attributed its predicament to external factors, including the repercussions of President Donald Trump’s steel tariffs.
Goncalves affirmed his backing for steel tariffs against Canada, emphasizing the positive impact of Section 232 tariffs on the American steel industry. When asked about selling the company, he indicated openness to a good offer while maintaining Stelco’s commitment to Canada.
Layoffs have commenced, with Ron Wells, president of the United Steelworkers Local 1005, anticipating 300 to 350 job cuts in Hamilton and additional layoffs at Stelco’s Lake Erie Works in Nanticoke. Wells criticized Goncalves for promoting the success of Trump’s tariffs ahead of U.S. midterm elections, urging the federal government to hold Cleveland-Cliffs accountable for its actions.
