Industry minister presses Stelco's U.S. owner to present job-saving plan in 5 days

The federal government is turning up the heat on the U.S. owner of Stelco Holdings Inc. over impending layoffs at the Hamilton-based steel plant.

Industry Minister Mélanie Joly sent a letter to Stelco president Paul Simon on Monday laying out her "extreme disappointment" over the company's plan to lay off 500 workers in response to U.S. tariffs and other market pressures.

Canada gave U.S.-based Cleveland-Cliffs the go-ahead to purchase Stelco back in 2024 under the Investment Canada Act, which regulate foreign takeovers.

Canada's approval of the deal was contingent on the new owner maintaining the number of union jobs and the majority of non-union positions, Joly said. 

Those conditions don't expire just because "business strategy or market conditions have changed," she wrote in the letter.

"This is particularly relevant here, where Cleveland-Cliffs has cited trade disruptions as affecting its operations at Hamilton Works, notwithstanding its chief executive officer’s public support for Section 232 tariff measures," Joly said. 

Lourenco Goncalves, the chief executive of Cleveland-Cliffs, has publicly supported U.S. steel tariffs, saying they are vital to the U.S. steel industry.

In the letter, Joly said she wants to see Cleveland-Cliffs' plan to comply with all undertakings of the original acquisition. She asks for a response within five days or the government could consider legal action. 

If the company does not comply, Ottawa could go to superior court where a judge could order the company to meet its obligations, impose penalties or even order a sale of the business, Joly said. 

Ron Wells, president of United Steelworkers Local 1005, which represents workers at Stelco’s Hamilton plant, said he is pleased the federal government acted "very swiftly."

"Cleveland-Cliffs knew exactly what they were agreeing to when they bought the place," he said, referring to the company's five-year commitment to maintain at least the same number of unionized workers.

“We’re hoping that they will recant the layoff ... but I’m not holding my breath."

The existence of Joly's letter was first reported by the Toronto Star.

This report by The Canadian Press was first published Oct. 6, 2026.

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