Canada's dispute with Cleveland-Cliffs over Stelco's job commitments intensified after 175 Hamilton workers were temporarily laid off, with Prime Minister Mark Carney warning that failing to honor the pledges would be a mistake.
Canada approved Cleveland-Cliffs' acquisition of Stelco in 2024 with binding undertakings lasting five years. They require at least the same number of unionized employees and the vast majority of nonunionized employees as when the deal was announced. The terms also cover Stelco's Hamilton head office, collective bargaining agreements, capital spending and research and development.
In an Oct. 26 release, Cleveland-Cliffs said Stelco's projected average annual employment for the current reporting period included at least 1,879 bargaining-unit full-time equivalent employees, against a required 1,766, and 627 salaried full-time equivalent employees, against a required 603. Those figures are period averages, not a headcount on a particular day. The company said its review found Stelco met all 34 undertakings.
The Canadian Press reported that a Sept. 28 layoff plan could affect as many as 500 workers at Hamilton Works and Lake Erie Works in Nanticoke, Ontario. The 175 temporary layoffs so far were all in Hamilton. The outlet reported that Cleveland-Cliffs cited U.S. tariffs, weak demand for Canadian steel and competition from imports.
Industry Minister Mélanie Joly rejected the company's report and called for laid-off workers to return immediately before she meets Cleveland-Cliffs Chairman and CEO Lourenco Goncalves, The Canadian Press reported. Joly said, “Assertions of compliance are not a substitute for the information and evidence necessary to establish compliance.” Carney said on Oct. 29, “The mistake here would be Cleveland-Cliffs not respecting the obligations, the commitments that they made in the acquisition.”
Cleveland-Cliffs said it plans to update its compliance report once the current reporting period closes Oct. 31.
