Stelco will recall 175 Hamilton workers Dec. 1 and pay their missed regular wages after Canada’s Industry Minister Melanie Joly threatened to seek a court order requiring its U.S. owner to sell the steelmaker.
Cleveland-Cliffs, the U.S. steelmaker that owns Stelco, said in a Nov. 13 statement that customer commitments would enable the Hamilton plant to resume finishing operations. The company said compensation would cover the regular earnings workers missed during their temporary layoffs.
Joly had set a Nov. 13 deadline for a response, saying she would ask a court to compel Cleveland-Cliffs to sell Stelco if managers did not contact her by then. The recall announcement followed shortly after her warning.
The dispute escalated after Cleveland-Cliffs outlined late-September cuts that could reach 500 workers across Stelco’s sites in Hamilton and Nanticoke, Ontario. The company cited soft demand and poor conditions for coated and cold-rolled steel. It also argued that lower-priced foreign steel was eroding demand for Canadian output, while U.S. tariffs made Canadian steel more expensive for American buyers.
Ottawa said the layoffs violated terms Cleveland-Cliffs accepted when it acquired Stelco in 2024, including a requirement to maintain the same number of unionized Canadian employees through 2029. Cleveland-Cliffs previously said it remained compliant with the undertakings, as EconoTimes reported in its coverage of the company’s position.
United Steelworkers Local 1005 President Ron Wells welcomed the recall. He credited organizing by employees, union representatives and public officials with helping secure it, and described the layoffs as “illegal” and “immoral.” Joly said the result sent investors a message that Canadian law applies to everyone, regardless of wealth.
Cleveland-Cliffs said customers had agreed to support its Hamilton operation despite what it described as the federal government’s failure to address shortfalls in its tariff-response program. Its statement did not explain what had changed or describe the customer arrangements in detail. The 175 workers are scheduled to return Dec. 1.
