The CEO of the American firm that controls Stelco, a steelmaker in Hamilton, is ready to battle the Canadian government in court to uphold Stelco’s decision to lay off numerous employees. Cleveland-Cliffs CEO Lourenco Goncalves, speaking on CBC’s “Rosemary Barton Live,” challenged the government’s claim that the company is breaching employment commitments under the Investment Canada Act.
Industry Minister Mélanie Joly stated that Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to maintain current levels of unionized and non-unionized employees until 2029. Goncalves clarified that the contract does not require a specific daily employment level, and he would not have agreed to such terms imposed by the Canadian government.
Stelco maintains that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., with assurance that the jobs will be reinstated. Despite Stelco attributing its financial challenges to tariffs, Goncalves expressed support for U.S. tariffs on Canadian steel and even mentioned willingness to sell the company.
Joly issued an ultimatum to the company, demanding a plan to safeguard up to 500 jobs at the Hamilton plant or face potential legal action. Prime Minister Mark Carney pledged to use all available measures against Cleveland-Cliffs. Stelco refuted the government’s allegations of breaching commitments, emphasizing external factors like U.S. tariffs impacting their situation.
Goncalves backed steel tariffs against Canada, crediting Section 232 tariffs for reviving the American steel industry. He affirmed willingness to sell the company for the right offer while aiming to maintain a positive presence in Canada. The ongoing layoffs at Stelco prompted calls for a clear plan from concerned employees and union representatives, amid expectations of significant job cuts in Hamilton and Nanticoke.
The situation at Stelco has drawn attention to the clash between the company and the Canadian government over layoffs and trade policies, with stakeholders closely monitoring the developments.