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- calendar_today October 27, 2026
Cleveland-Cliffs States Full Compliance with Canadian Commitments
Stelco's Ohio-based parent company, Cleveland-Cliffs, has declared that the company is in "full compliance" with all obligations made under the Investment Canada Act following its 2024 acquisition of Stelco. This announcement comes after what the company described as "an exhaustive review" of its 34 undertakings.
Layoff Plans Spark Government Response
Recently, Cleveland-Cliffs announced plans to lay off up to 500 workers as it temporarily idles some steel production operations at Stelco's Hamilton steel plant. The company stated that these layoffs are necessary to "ensure the survival" of Stelco amidst ongoing U.S. tariffs on steel, which the company claims have put significant pressure on its Canadian sales.
Labor union representatives have detailed that 333 layoffs are expected in Hamilton alone, with as many as 50 more anticipated at the Lake Erie Works in Nanticoke, according to United Steelworkers Local 1005 president Ron Wells and USW Local 8782 president John McElroy.
Canadian Government Issues Ultimatum
Canadian Industry Minister Mélanie Joly responded to news of the layoffs by giving Cleveland-Cliffs a 15-day deadline to reverse the action before the matter is taken to court. Joly emphasized that the government's position is clear and asserted, "We have a very strong case." She noted that a response was received from the company to her official letter, which accuses Cleveland-Cliffs of violating its commitments under the Investment Canada Act.
While Joly has expressed a willingness to meet with company officials, she insists that a plan to reinstate jobs must come first. "Let me be clear: no act of God or change in market conditions can relieve Cleveland-Cliffs of the commitments it made to Canada. Those commitments are not optional," said Joly in a recent statement.
Cleveland-Cliffs Seeks Meeting with Government
In a release, Cleveland-Cliffs claimed that "Stelco’s performance exceeds the commitments that were made at the time of the acquisition. This includes the employment undertakings." The company stated that it has requested a meeting with Minister Joly and Cleveland-Cliffs chair and CEO Lourenco Goncalves to discuss a strategy for bringing back the 175 temporarily laid-off workers in Hamilton. The company noted, however, that it has not yet received a response from Joly to this request.
Goncalves said, "We want to find a solution for Hamilton and its workers as soon as possible and believe common sense trade policy will make this a reality." He also expressed the company's desire to resolve the matter swiftly in partnership with government officials.
Performance and Policy Context
Despite the layoffs, Cleveland-Cliffs reported that Stelco's latest financial results were the strongest in the two years since the acquisition. In an October 19 statement, Goncalves highlighted improvements in the Canadian hot-rolled steel market, while on an earnings call he praised U.S. trade policies for creating positive conditions for investment in local communities. At the same time, the company has cited steel tariffs as a direct contribution to the layoffs, underscoring the broader Canada-US trade and trade dispute impacting the steel industry.
Minister Joly, however, criticized Stelco and Cleveland-Cliffs, stating that their actions amount to "double violation" of their undertakings, both in terms of employment numbers and advocacy for tariff-free Canadian steel access to the U.S.
Compliance Reporting and Next Steps
Cleveland-Cliffs indicated that Stelco would be updating its compliance report after the close of the current reporting period on October 31. Meanwhile, tensions remain high as both the company and federal officials await further discussions and a resolution on steel industry jobs affected by the ongoing tariffs and layoff plans.
Source: cbc.ca.
