Cleveland-Cliffs Disputes Canadian Claims of Employment Violations
Cleveland-Cliffs claims its subsidiary Stelco is meeting employment commitments despite Canadian Industry Minister Mélanie Joly threatening court action over layoffs.
Industry Minister Mélanie Joly has accused Cleveland-Cliffs Inc. of violating six binding commitments, including employment guarantees, made during its 2024 acquisition of Stelco Inc. Joly issued a 15-day deadline for the company to reverse layoffs, asserting that market conditions do not relieve the company of its obligations and threatening court action if the deadline is not met.
Cleveland-Cliffs responded on October 26, 2026, by submitting an updated compliance report to Joly. The company argues that Stelco is in full compliance with 34 undertakings under the Investment Canada Act. It projects average annual unionized full-time employment to reach at least 1,879 workers, exceeding the required 1,766, and salaried employment to average 627, surpassing the requirement of 603.
Despite these projections, the company plans to lay off up to 500 workers, including 175 temporary layoffs in Hamilton and up to 50 at Lake Erie Works in Nanticoke. Cleveland-Cliffs claims these cuts are necessary for survival due to U.S. steel tariffs, though CEO Lourenco Goncalves recently described the third quarter as Stelco's strongest since the acquisition. Goncalves has requested a meeting with Joly to discuss resuming full employment for Hamilton workers, but the company claims the minister has not yet responded.
