Politics · Canada · 2 hrs ago
Joly gives Stelco owner 15 days to address Canadian job commitments
Industry Minister Mélanie Joly has given Stelco’s owner 15 days to respond to claims it broke job commitments made when it bought the Canadian steelmaker.
Stelco is owned by Ohio-based Cleveland-Cliffs, which acquired it in 2024 under legally binding promises to maintain Canadian jobs for five years.
The commitments set minimum average workforces of 1,766 unionized and 603 salaried employees at Stelco.
The dispute follows the company’s announcement that it would lay off up to 500 workers in Hamilton and Nanticoke, Ontario.
Cleveland-Cliffs says U.S. tariffs on Canadian steel have hurt its ability to compete, while Joly says the risk of tariffs was foreseeable when the company made its commitments.
Ottawa says the company must comply, show it has not breached the promises, or take steps to fix a breach; the government says legal action may follow.
The company has 15 days to respond to the letter.
Industry Minister Mélanie Joly gave Stelco’s U.S. owner, Cleveland-Cliffs, 15 days to address alleged breaches of Canadian job commitments or face possible legal action.
The commitments stem from Cleveland-Cliffs’ 2024 acquisition of Stelco and include minimum employment levels for unionized and salaried workers.
Stelco announced layoffs of up to 500 workers at its Hamilton and Nanticoke operations on Sept. 28.
The federal government says the layoffs breach legally binding commitments, while the company argues it has not broken the agreement and cites the impact of U.S. tariffs.
Joly’s letter also criticized Cleveland-Cliffs chief executive Lourenco Goncalves for supporting U.S. tariffs on Canadian steel.
- Who
- Industry Minister Mélanie Joly and Stelco’s U.S. owner, Cleveland-Cliffs.
- What
- Joly gave the company 15 days to address alleged breaches of job commitments or risk legal action.
- When
- The letter was sent Thursday, Oct. 22, 2026.
- Where
- The job commitments concern Stelco’s Canadian operations, including its Hamilton and Nanticoke, Ont., facilities.
- Why
- The federal government says layoffs breach commitments made when Cleveland-Cliffs acquired Stelco in 2024. The company says tariffs have made it harder to compete.
Government of Canada
Cleveland-Cliffs
Employment commitments
Government of Canada
The government says the announced layoffs breach legally binding undertakings to maintain minimum employment levels in Canada.
Cleveland-Cliffs
Cleveland-Cliffs says it has not breached the agreement and argues employment levels do not have to be maintained every day.
Effect of tariffs
Government of Canada
Joly says U.S. tariffs were foreseeable when the company made its commitments.
Cleveland-Cliffs
The company says tariffs have made it too difficult to compete in galvanized steel and that changes in circumstances can justify not enforcing or renegotiating undertakings.
Response to the layoffs
Government of Canada
Joly is demanding compliance or steps to address the situation and warns of possible legal action.
Cleveland-Cliffs
Stelco has said it will not reverse the layoffs, according to Global News.
Cleveland-Cliffs acquired Stelco and made employment undertakings to the federal government.
Stelco announced layoffs of up to 500 workers in Hamilton and Nanticoke, Ont.
Stelco president Paul Simon wrote to Joly arguing that changed circumstances could justify not enforcing or renegotiating the undertakings.
Joly sent a new letter giving the company 15 days to address the alleged breaches or face possible legal action.
- Deadline
- 15 days
- Potential layoffs
- Up to 500 workers
- Unionized employment undertaking
- At least 1,766 workers on an average aggregate annual basis
- Salaried employment undertaking
- At least 603 workers
- Facilities named
- Hamilton and Nanticoke, Ont.
- Tariff rate cited
- 50 per cent
3 sources
What people are saying
The possibility of tariffs on Canadian steel was foreseeable in October 2024, and the Undertakings specifically reflect that possibility
betrayed
very happy
I have my fingerprints on that 50 percent. In other words, I influenced that,