Canada Gives Cleveland-Cliffs 15 Days to Reverse Stelco Layoffs

Industry Minister Mélanie Joly has issued a formal demand letter to Cleveland-Cliffs Inc., giving the U.S.-based owner of Stelco 15 days to reverse layoffs of up to 500 workers or provide evidence justifying the cuts. The layoffs affect employees at Stelco's Hamilton and Lake Erie Works in Nanticoke, Ontario.

Joly alleges that Cleveland-Cliffs violated six binding commitments made during its 2024 acquisition of Stelco under the Investment Canada Act, which required the company to maintain unionized employee levels for five years. The Canadian government claims CEO Lourenco Goncalves lobbied the U.S. government for 50 percent tariffs on Canadian steel and then used those same tariffs to justify the layoffs while diverting production to U.S. operations.

Cleveland-Cliffs has countered that the Canadian galvanized steel market is too small for two domestic producers and urged Ottawa to tighten import restrictions. Goncalves maintains that no contract required maintaining employment levels every single day of the five-year period, stating he acted as a responsible owner.

Prime Minister Mark Carney characterized the layoffs as a betrayal to workers. If Cleveland-Cliffs fails to comply with the 15-day deadline, the Canadian government may seek court orders to force the company to honor its commitments, impose daily fines of $10,000, suspend voting rights, or require the company to divest control of Stelco.