The chief executive officer of the U.S. corporation that controls Stelco, a steelmaker based in Hamilton, is ready to engage in a legal battle with the Canadian government to uphold Stelco’s decision to lay off hundreds of 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 mandated by the Investment Canada Act.
Industry Minister Mélanie Joly stated that Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to sustain the same level of unionized and non-unionized employees until 2029. However, Goncalves clarified that the contract does not specify maintaining employment levels daily for the entire duration, emphasizing that he would not have agreed if such a condition existed.
Goncalves reiterated that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., with assurances that the jobs will be reinstated. He also expressed openness to selling the company and voiced support for U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges to tariffs.
In response to the Canadian government’s ultimatum to present a plan to save up to 500 jobs at the Hamilton plant, Stelco Inc. affirmed its intention to proceed with the layoffs, refuting the government’s claim of breaching commitments. The company attributed its situation to external factors, including the impact of U.S. President Donald Trump’s steel tariffs.
Goncalves endorsed steel tariffs against Canada, asserting that they have revived the American steel industry. He indicated willingness to consider selling the company for a suitable offer while expressing confidence in Stelco’s potential to remain a positive contributor in Canada.
As layoffs commence, Stelco employees, union representatives, and local stakeholders express concerns about job security and the future of Hamilton’s steel operations. The United Steelworkers Local 1005 president anticipates layoffs over three weeks, with a significant number expected in Hamilton and at Stelco’s facility in Nanticoke, Ontario. There are calls for the government to hold Cleveland-Cliffs accountable and ensure compliance with commitments amid ongoing trade tensions.