Business · Economy · 1 day ago
Stelco says it will proceed with Ontario layoffs despite Ottawa's warning
Stelco, a steelmaker owned by U.S. company Cleveland-Cliffs, says it will proceed with layoffs affecting up to 500 workers in Hamilton and Nanticoke, Ontario.
The company plans to idle its Hamilton Works finishing lines, saying it cannot profitably make galvanized steel amid trade pressures.
Ottawa says the layoffs may breach binding job commitments made when it approved Cleveland-Cliffs’ $3.4-billion purchase of Stelco in 2024.
Those commitments included keeping at least the same number of unionized workers in Canada and the vast majority of non-unionized workers for five years.
Stelco argues the commitments do not forbid layoffs or require a set workforce level every day, and says U.S. tariffs and other external factors hurt its business.
Industry Minister Mélanie Joly gave the company five business days to provide a plan to meet its commitments, warning it could face legal action.
Stelco says laid-off workers may apply for jobs at its Lake Erie plant and is urging Ottawa to further restrict some steel imports; the federal government’s next response is not stated.
Stelco says it will proceed with hundreds of layoffs in Ontario despite Ottawa’s warning of possible legal action.
The company says the layoffs do not breach its employment commitments under the Investment Canada Act.
The layoffs affect up to 500 workers at Stelco’s Hamilton and Nanticoke operations.
Stelco says U.S. tariffs and other external factors have made it difficult to produce galvanized steel profitably.
The federal government says the company has binding commitments to maintain unionized employment and most non-unionized jobs.
- Who
- Stelco, owned by U.S. steelmaker Cleveland-Cliffs, and the federal government.
- What
- Stelco says it will proceed with layoffs affecting up to 500 workers and disputes Ottawa’s claim that this breaches its employment commitments.
- When
- Stelco announced the layoffs on Sept. 28; the company’s response letter was reported on Oct. 10, 2026.
- Where
- Stelco operations in Hamilton and Nanticoke, Ontario.
- Why
- Stelco says tariffs and other external factors have made it unprofitable to produce some steel products.
Stelco
Federal government
Employment commitments
Stelco
Stelco says its planned layoffs do not breach its undertakings because they do not prohibit layoffs or require a fixed employment level on every day of the five-year period.
Federal government
The government says Stelco has binding commitments to maintain at least the same number of unionized employees and the vast majority of non-unionized employees.
Layoffs
Stelco
Stelco says it will proceed with the layoffs and that circumstances beyond its control have made some production unprofitable.
Federal government
Industry Minister Mélanie Joly gave the company five business days to provide a plan to comply with its commitments or face possible legal action.
Causes and response
Stelco
Stelco points to U.S. tariffs and calls for further restrictions on steel imports.
Federal government
The federal government says Stelco refused offers of financial support and has already imposed measures to curb steel dumping.
Your representation that Stelco’s planned layoffs cause it to breach its undertakings is false
the undertakings do not stipulate a commitment to avoid layoffs, nor do they include a requirement that employment levels be above a certain amount on each day of the five years of the undertakings.
The most important step the government could take
The federal government approved Cleveland-Cliffs’ $3.4-billion acquisition of Stelco with legally binding employment conditions.
Stelco announced layoffs of up to 500 workers in Hamilton and Nanticoke.
Industry Minister Mélanie Joly gave the company five business days to provide a plan to comply with its employment commitments or face possible legal action.
Reports said Stelco had told Ottawa it was not in violation and would proceed with the layoffs.
- Layoffs
- Up to 500 workers
- Affected locations
- Hamilton and Nanticoke, Ontario
- Acquisition
- Cleveland-Cliffs bought Stelco for $3.4 billion in 2024
- Employment commitment
- Five years
- Alternative work
- Stelco said laid-off workers could apply for openings at Lake Erie Works
Sources
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