Canada says it could force Stelco's U.S. owner to sell over layoffs
Canada's industry minister, Mélanie Joly, said Ottawa could fine Cleveland-Cliffs, seek a court order or force it to sell its Canadian assets, CBC News and Bloomberg reported. The U.S. company has begun laying off workers at its Stelco steel plant in Hamilton, Ontario. It blames U.S. tariffs and says the job cuts are temporary.
Canada's industry minister, Mélanie Joly, said Wednesday that the federal government is weighing legal action against Cleveland-Cliffs, the U.S. owner of steelmaker Stelco, over layoffs at its plant in Hamilton, Ontario, CBC News and Bloomberg reported.
Joly said the government is examining its options under Section 40 of the Investment Canada Act, which could include financial penalties, a court order forcing the company to keep its commitments or an order requiring it to sell its Canadian assets, CBC reported. "Everything is on the table," she said, according to Bloomberg.
"I'm always open to sit down with the company and find a solution, but we're looking at everything that is possible to keep jobs in Canada," Joly said, the outlets reported. She did not say whether the government would go to court or give a timeline for a decision, CBC said.
When Cleveland-Cliffs bought Stelco in 2024, it agreed to keep at least the same number of unionized workers, along with most non-union workers, for five years, CBC reported. In a letter to Joly dated Oct. 9, Stelco President and General Counsel Paul Simon wrote that the commitments "do not stipulate a commitment to avoid layoffs," Bloomberg reported.
Cleveland-Cliffs CEO Lourenco Goncalves has described the layoffs as temporary, saying the jobs would return once Canada and the United States reach a trade deal, CBC reported. The company has pointed to U.S. President Donald Trump's 50% tariffs on steel imports, the outlets reported. Bloomberg said the company called the trade war a situation "beyond its control" and is idling parts of Stelco that make cold-rolled and coated steel.
Ron Wells, president of United Steelworkers Local 1005, told CBC Radio's Metro Morning that 90 workers were laid off last week and another 85 were expected to lose their jobs by the end of this week. The union has estimated that 300 to 350 jobs could be cut in Hamilton, CBC reported. Bloomberg said Cleveland-Cliffs has laid off hundreds of workers at the plant.
Prime Minister Mark Carney has called the job cuts a "betrayal," Bloomberg reported. Federal NDP Leader Avi Lewis and Ontario NDP Leader Marit Stiles have urged the government to nationalize Stelco, CBC said.
What we know: Ottawa says it could fine Cleveland-Cliffs, take it to court or force a sale of its Canadian assets.
What we don't: Which step, if any, the government will take, and when.
Where outlets agree CBC News and Bloomberg both report that Joly said the options include financial penalties or forcing the company to sell its Canadian assets.
Where they differ CBC cites the union as saying 90 workers were laid off last week with 85 more expected this week, while Bloomberg says the company has laid off hundreds.