Cleveland-Cliffs has reported that Stelco’s performance in the third quarter of this year was notably robust, marking its best quarter since being acquired by the U.S. company in 2024. Despite this positive outlook, a significant number of employees at the steelmaker’s facilities in Hamilton and Nanticoke, Ontario, are facing imminent job losses due to ongoing layoffs.
Lourenco Goncalves, the CEO of Cleveland-Cliffs, highlighted the strength of Stelco’s performance, particularly in the Canadian hot-rolled market which has shown significant improvement. Goncalves emphasized the need for further action by the Canadian government to address the oversupply issue in the galvanized steel market.
Stelco Holdings Inc. announced plans to partially idle its Hamilton plant in response to challenges posed by U.S. tariffs impacting sales. As a result, layoff notifications have been issued, with 333 job cuts expected in Hamilton and up to 50 at the Lake Erie Works in Nanticoke, according to union representatives.
During an earnings call, Goncalves expressed satisfaction with the growth in Cleveland-Cliffs’s major profit drivers. He commended President Donald Trump’s trade policies for creating an environment conducive to investments and domestic production, despite challenges faced by Stelco due to tariffs.
Goncalves attributed the success of the hot-rolled steel business to the Canadian government’s tariff-rate quota system, which regulates import volumes. He reiterated Stelco’s commitment to maintaining employment levels as agreed upon during Cleveland-Cliffs’s acquisition of the company.
The CEO urged the Canadian government to restrict galvanized steel imports to mitigate market exposure and potentially rehire laid-off workers. He also indicated a willingness to sell Stelco and pursue legal action if necessary to uphold the layoff plan amidst ongoing trade negotiations between Canada and the U.S.
Minister Mélanie Joly stated that the government is exploring legal avenues under the Investment Canada Act to address Cleveland-Cliffs’s actions. Potential measures include financial penalties, court orders for compliance, or asset divestment.
Union representatives expressed concerns over the layoffs, citing feelings of underappreciation among dedicated employees. They found Goncalves’s messaging contradictory, questioning the closure of certain steel departments despite positive financial results. Additionally, they called for accountability in enforcing trade regulations and ensuring job protection for workers in the industry.