Cleveland-Cliffs says Stelco requested a meeting with Canada's Industry Minister Mélanie Joly about 175 temporarily laid-off Hamilton workers; The Canadian Press reported Ottawa alleges breaches of employment commitments tied to the company's 2024 acquisition.
The company said Stelco requested the meeting with Joly and Chairman and CEO Lourenco Goncalves on Oct. 23 to discuss restoring employment for those workers. Cleveland-Cliffs says Stelco remains in compliance with its obligations.
Canada approved Cleveland-Cliffs' acquisition in October 2024 under binding undertakings that run for five years. The conditions required the company to keep unionized employment at least at its level when the deal was announced and retain the vast majority of nonunionized workers. The approval package also covered Stelco's name, Hamilton headquarters, labor agreements, investment and emissions.
Cleveland-Cliffs' projections for the reporting period ending Oct. 31 put average annual bargaining-unit employment at no fewer than 1,879 full-time equivalents and salaried employment at 627. The respective minimums it cited are 1,766 and 603.
Joly alleges the company failed to honor six commitments, The Canadian Press reported. Cleveland-Cliffs says it has met all 34 undertakings. Chairman and CEO Lourenco Goncalves said in the company's statement, “We have honored them.”
Section 40 of the Investment Canada Act allows a court to order compliance or divestiture if it finds the minister's demand justified and unmet. The law also allows a penalty of up to C$10,000 for each day of contravention.
Cleveland-Cliffs has cited imports of non-automotive galvanized steel as a problem in Canada's market and said a trade-policy response could help restore jobs. The dispute follows earlier coverage of Canada's response to the Stelco layoff dispute. Stelco will update its compliance report after the reporting period closes Oct. 31, Cleveland-Cliffs said.