The CEO of the American company that owns Stelco, a steelmaker based in Hamilton, is ready to challenge the Canadian government in court to defend Stelco’s decision to lay off hundreds of employees. In an interview on CBC’s Rosemary Barton Live, Cleveland-Cliffs CEO Lourenco Goncalves refuted the government’s claim that the company is breaching employment commitments under the Investment Canada Act.
Last week, Industry Minister Mélanie Joly stated that Cleveland-Cliffs’ acquisition of Stelco in 2024 included promises to maintain the same number of unionized and non-unionized employees until 2029. Goncalves clarified that the contract does not mandate a specific daily employment level, and he would not have agreed to such a condition.
Stelco maintains that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., with the intention to rehire the affected workers. Goncalves also expressed willingness to sell the company and endorsed U.S. steel tariffs, despite Stelco attributing its financial challenges to tariffs.
Joly issued an ultimatum to the company, demanding a plan to safeguard up to 500 jobs at the Hamilton plant or face legal consequences. Prime Minister Mark Carney vowed to utilize all available measures against Cleveland-Cliffs within the confines of the law.
Stelco defended its decision to proceed with the layoffs, denying any breach of commitments. The company attributed its situation to external factors, including the impact of U.S. tariffs imposed by former President Donald Trump.
Goncalves reiterated his support for steel tariffs against Canada, emphasizing their role in reviving the American steel industry. He confirmed openness to selling Stelco for the right offer while expressing confidence in the company’s potential to contribute positively to Canada.
As layoffs commence, Stelco employees, like Jordan Williams, are seeking a comprehensive plan from Goncalves to secure jobs and ensure a return to work. Union President Ron Wells confirmed the ongoing layoffs in Hamilton and anticipated further job cuts at Stelco’s facility in Nanticoke, Ontario.
Wells criticized Goncalves for appearing to align with Trump’s policies ahead of U.S. midterm elections, urging the federal government to hold Cleveland-Cliffs accountable for its actions.