Business · Companies · 1 hr ago
Cleveland-Cliffs says Stelco meets all 34 acquisition undertakings
Stelco says it is meeting all 34 commitments made when Cleveland-Cliffs acquired the company.
Stelco, a wholly owned subsidiary of US steelmaker Cleveland-Cliffs, sent an updated compliance report to Canada’s Industry Minister Mélanie Joly.
The commitments were made under Canada’s Investment Canada Act as part of the acquisition.
Stelco expects average bargaining-unit employment of at least 1,879, above the required 1,766 full-time equivalent employees.
It also expects average salaried employment of at least 627, compared with a required 603.
The company says its employment levels will exceed the agreed minimums, and that its performance exceeds commitments in several areas.
The report updates the government on Stelco’s compliance; no further action or response from the minister is stated.
Cleveland-Cliffs says Stelco is in full compliance with all 34 commitments made when it acquired the steelmaker in 2024.
The company says Stelco expects average annual unionized employment of at least 1,879, above the required 1,766.
The federal government says the planned layoffs breach a commitment to maintain at least the same number of unionized employees in Canada for five years.
Stelco announced plans to lay off up to 500 workers at its Hamilton and Nanticoke plants.
Cleveland-Cliffs has asked Industry Minister Mélanie Joly to meet to discuss restoring full employment for 175 temporarily laid-off Hamilton workers.
- Who
- Cleveland-Cliffs says its subsidiary Stelco meets its commitments. Industry Minister Mélanie Joly and the federal government dispute the company’s compliance.
- What
- Cleveland-Cliffs says Stelco is in full compliance with all 34 acquisition undertakings, including its employment commitments.
- When
- The company issued its statement on Monday, October 26, according to the article’s publication date.
- Where
- Stelco’s plants in Hamilton and Nanticoke, Ontario, are affected by the planned layoffs.
- Why
- Cleveland-Cliffs says its review found it had met the undertakings. The government says the layoffs breach a commitment to maintain unionized employment.
Cleveland-Cliffs
Canadian federal government
Compliance with undertakings
Cleveland-Cliffs
The company says Stelco is in full compliance with all 34 undertakings.
Canadian federal government
The government says the company has not met its commitments.
Unionized employment
Cleveland-Cliffs
Stelco expects average annual unionized employment of 1,879, above the required 1,766, Cleveland-Cliffs says.
Canadian federal government
The government says proceeding with the layoffs breaches a commitment to maintain at least the same number of unionized employees in Canada for five years.
Trade-policy advocacy
Cleveland-Cliffs
Cleveland-Cliffs says it is complying with its commitment on trade-policy advocacy and supports U.S. tariffs.
Canadian federal government
Joly says CEO Lourenco Goncalves’s advocacy for U.S. steel tariffs violated a promise to advocate for policies benefiting both countries’ steel industries.
Cleveland-Cliffs acquired Stelco and made 34 undertakings under the Investment Canada Act.
Stelco announced plans to lay off up to 500 workers at its Hamilton and Nanticoke plants.
Joly sent Cleveland-Cliffs a letter saying its advocacy for U.S. steel tariffs violated a trade-policy commitment.
Cleveland-Cliffs reached out to Joly to request a meeting about resuming full employment for 175 temporarily laid-off Hamilton workers.
Cleveland-Cliffs said it had completed an exhaustive review and was in full compliance with all 34 undertakings.
- Acquisition
- Cleveland-Cliffs acquired Stelco in 2024
- Undertakings
- 34 commitments under the Investment Canada Act
- Planned layoffs
- Up to 500 workers at plants in Hamilton and Nanticoke, Ontario
- Unionized employment
- Expected average of at least 1,879; required level 1,766
- Salaried employment
- Expected average of at least 627; required level 603
- Hamilton workers
- 175 temporarily laid off; Cleveland-Cliffs seeks to discuss restoring full employment
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