Business · Trade · 5 hrs ago
Stelco owner ready to fight Canada over planned Hamilton layoffs
Cleveland-Cliffs, an American company, owns Stelco, a steelmaker with a plant in Hamilton, Ontario.
CEO Lourenco Goncalves says he is prepared to fight the Canadian government in court over Stelco’s plan to lay off workers, a move that could affect up to 500 jobs.
Canada’s industry minister says Cleveland-Cliffs agreed when it bought Stelco in 2024 to keep employment levels broadly in place through 2029.
Goncalves disputes that this means the company must maintain those levels every day, and says the layoffs are temporary until Canada and the United States reach a trade agreement.
The government has demanded a plan to protect the jobs and warned it may take legal action; Stelco says it will proceed with the layoffs and denies breaking its commitments.
Goncalves also says he is open to selling Stelco and supports U.S. tariffs on steel, while Stelco has cited those tariffs as a factor in its economic difficulties.
The dispute could determine whether the layoffs go ahead and how the company’s employment commitments are enforced.
Cleveland-Cliffs CEO Lourenco Goncalves says he is prepared to fight the Canadian government in court over planned layoffs at Stelco’s Hamilton plant.
The federal government says the company’s 2024 purchase of Stelco included employment commitments through 2029.
Industry Minister Mélanie Joly has given the company an ultimatum to provide a plan to save up to 500 jobs or face potential legal action.
Goncalves says the layoffs are temporary and the jobs will be restored when Canada and the United States reach a trade agreement.
He also says he is open to selling Stelco and supports U.S. tariffs on Canadian steel.
- Who
- Cleveland-Cliffs CEO Lourenco Goncalves and the Canadian government are at odds over Stelco’s planned layoffs.
- What
- Goncalves says he is prepared to fight in court to proceed with the layoffs. The government says the company has employment commitments.
- When
- Goncalves spoke on Sunday. The government’s ultimatum was issued last week.
- Where
- Stelco’s Hamilton, Ontario, steel plant.
- Why
- The company says the layoffs are temporary amid economic struggles and will be reversed after a Canada-U.S. trade agreement. The government says the layoffs could breach employment commitments.
Canadian government
Cleveland-Cliffs
Employment commitments
Canadian government
The government says the 2024 purchase included commitments to maintain employment levels through 2029.
Cleveland-Cliffs
Goncalves says there is no requirement to maintain a set employment level every day for five years.
Planned layoffs
Canadian government
Industry Minister Mélanie Joly has demanded a plan to save up to 500 jobs or the company could face legal action.
Cleveland-Cliffs
The company says the layoffs will proceed and denies that they breach its commitments.
There is no provision in the contract that I have to keep employment at a certain level every single day of the five years
If that was an imposition of the Canadian government, I would not have accepted.
undertakings to continue to employ at least the same number of unionized employees and the vast majority of non-unionized employees as were employed when the transaction was announced
I am in favour of tariffs against all the countries in the entire world that dump steel into the United States,
Cleveland-Cliffs purchased Stelco.
Industry Minister Mélanie Joly demanded a plan to save up to 500 Hamilton plant jobs or the company could face potential legal action.
Cleveland-Cliffs CEO Lourenco Goncalves said he was prepared to fight the Canadian government in court over the layoffs.
- Potential jobs affected
- Up to 500
- Purchase year
- 2024
- Employment commitments
- Through 2029
- Plant location
- Hamilton, Ontario
- Company owner
- Cleveland-Cliffs
Sources
Related news
Canada loses 68,000 jobs in September as unemployment rate rises to 6.5%
Shell to buy 30% stake in proposed Bay du Nord oil project
Court dismisses Tim Hortons class-action lawsuit
GM recalls more trucks over side-curtain airbag risk
Stelco says it will proceed with Ontario layoffs despite Ottawa's warning
Kevin's Natural Foods turkey gravy recalled over undeclared mustard
Geely plans to start selling cars in Canada in 2027
Roblox resale earnings helped 25-year-old buy a Windsor home
Moms Offering More and Archewell launch crewneck supporting Alliance for Moms
Research links protected workloads to stronger workplace performance
Alberta farmers face trade and transport questions if province separates
