Canada · 13 d ago
K2HWY · CC BY 4.0 · Wikimedia Commons
Stelco layoffs: Ottawa gives the U.S. owner 15 days to reverse them or face court
Ottawa's deadline to Cleveland-Cliffs
15 days to reverse the layoffs
Industry Minister Mélanie Joly wrote to Stelco on Thursday: reverse the layoffs of up to 500 workers in Hamilton within 15 days, or Ottawa takes legal action.
Jobs promised in Canada, at least
1 766 unionized employees 603 non-unionized employees
To buy Stelco in 2024, Cleveland-Cliffs promised to keep at least 1,766 unionized and 603 non-unionized employees in Canada. Ottawa says the layoffs break that promise.
Gabriel Hutchinson · CC BY-SA 4.0 · Wikimedia Commons
Joly's letter says Cleveland-Cliffs chief executive Lourenco Goncalves backed U.S. tariffs on Canadian steel and took credit for them, although the company had pledged to support both countries' steel industries.
What a court could order
- Monetary penalties
- Keeping its commitments
- Selling its Canadian assets
If the company does not comply, a court could impose monetary penalties, order it to keep its commitments, or order it to sell its Canadian assets.
Stelco says it has not broken the agreement and does not have to keep the same number of jobs every day. It blames U.S. tariffs, citing a 58 per cent drop in steel exports to the United States.
