Business · Companies · 1 hr ago
Stelco disputes Ottawa’s claims as layoffs threaten hundreds of jobs
Stelco, an Ontario steelmaker owned by U.S.-based Cleveland-Cliffs, is moving to lay off up to 500 workers.
The company says steeply reduced sales to U.S. customers, following 50 per cent U.S. tariffs on Canadian steel, have forced the cuts.
Ottawa says the 2024 approval of Cleveland-Cliffs’ purchase of Stelco required the company to maintain the number of union jobs and most non-union positions.
Industry Minister Melanie Joly says those commitments remain binding despite changes in market conditions or business plans.
Stelco disputes that interpretation, saying the planned layoffs do not breach its agreement with the government.
The federal government is reviewing Stelco’s response and says all legal options are being considered.
The dispute concerns whether the layoffs violate conditions attached to the foreign takeover approval.
Stelco says it remains in compliance with its federal agreement as it begins laying off workers.
The company says U.S. tariffs and declining sales have forced it to cut up to 500 jobs.
Industry Minister Melanie Joly says the company must meet legally binding commitments to employees and that the government is considering its options.
The federal government approved Cleveland-Cliffs’ purchase of Stelco in 2024 subject to employment commitments.
- Who
- Stelco, owned by U.S.-based Cleveland-Cliffs, and the federal government, represented by Industry Minister Melanie Joly.
- What
- Stelco is laying off workers and disputes the government’s claim that the cuts breach its employment commitments.
- When
- The dispute was reported on Oct. 12, 2026; Cleveland-Cliffs said it responded to Joly’s office on Oct. 9.
- Where
- Hamilton Works in Ontario, Canada.
- Why
- Stelco says 50 per cent U.S. tariffs on Canadian steel and declining U.S. sales have hurt its business.
Stelco
Government of Canada
Employment commitments
Stelco
Stelco says it remains in compliance and that its agreement does not require it to avoid layoffs.
Government of Canada
The government says Stelco must maintain agreed employment levels and that changing business conditions do not end those commitments.
Reason for layoffs
Stelco
Stelco says unprecedented market conditions, including U.S. tariffs, have forced cuts of up to 500 workers.
Government of Canada
Joly says the company’s business strategy or market conditions do not remove its legal obligations.
Canada approved Cleveland-Cliffs’ purchase of Stelco under the Investment Canada Act, subject to employment commitments.
Stelco submitted an annual report confirming its compliance with the employment undertakings.
Stelco says its more recent communications with the government about business impacts date back to this month.
Cleveland-Cliffs said it sent a response to Joly’s office.
Joly said the government continued to expect Stelco to meet its employment commitments and that all options were under consideration.
- Potential job cuts
- Up to 500 workers
- U.S. tariffs
- 50 per cent on Canadian steel imports
- Acquirer
- Cleveland-Cliffs
- Federal approval
- 2024, under the Investment Canada Act
- Minister
- Melanie Joly
What people are saying
The Government of Canada continues to expect Stelco to meet its legally binding commitments to employees.
As our legal team reviews the Stelco letter, all options are on the table.
Your representation that Stelco’s planned layoffs cause it to breach its undertakings is false as the undertakings do not stipulate a commitment to avoid layoffs.
Stelco remains in compliance
Sources
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