The CEO of the American firm that owns Stelco, a steelmaker in Hamilton, is ready to challenge the Canadian government in court over Stelco’s decision to lay off numerous employees. Cleveland-Cliffs CEO Lourenco Goncalves, in an interview on CBC’s Rosemary Barton Live, contested the government’s claim that the company is breaching employment commitments under the Investment Canada Act.
According to Industry Minister Mélanie Joly, Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to maintain the same number of unionized and non-unionized employees until 2029. Goncalves clarified that there is no contractual requirement to maintain employment levels daily for the entire five-year period and emphasized that he would not have agreed to such a condition.
Stelco’s stance is that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., with the expectation that jobs will be reinstated. Goncalves also expressed openness to selling the company and voiced support for U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges partly to tariffs.
In response to the Canadian government’s ultimatum demanding a plan to save up to 500 jobs at the Hamilton plant, Stelco Inc. affirmed its intention to proceed with the layoffs and refuted the government’s allegation of breaching commitments. The company highlighted external factors, such as President Trump’s steel tariffs, as contributors to its current situation.
Goncalves reiterated his backing of steel tariffs and indicated willingness to sell the company for a good offer while maintaining Stelco’s commitment to Canada. The ongoing layoffs at Stelco have raised concerns among employees and union representatives, with calls for a viable plan to secure jobs and support affected families. Expectations are for layoffs to continue over three weeks, impacting both Hamilton and Nanticoke operations. Union president Ron Wells expressed hopes that the government holds Cleveland-Cliffs accountable and ensures compliance with agreed-upon commitments.