Joly threatens ‘full force of the law’ over Cleveland-Cliffs’ Stelco job commitments

Canada's industry minister said Wednesday the U.S. owner of Stelco Holdings Inc. cannot use the trade war to justify cutting jobs it committed to when it bought the Hamilton, Ont.-based steel plant, particularly when the head of the Ohio-based company has publicly backed steel tariffs.

Mélanie Joly told reporters that the chief executive of U.S.-based Cleveland-Cliffs has supported steel tariffs and therefore cannot characterize the company's plan to lay off up to 500 workers due to tariffs and market pressures as beyond its control.

"He's in favour of these U.S. tariffs against steel," she said, referring to Cleveland-Cliffs CEO Lourenco Goncalves' public support of American steel tariffs.

"They cannot say that this is now an act of God or force majeure."

If the company does not respond to the federal government's demand for a plan outlining how it will meet all of its commitments, including maintaining more than 1,500 jobs, Ottawa will pursue enforcement action, Joly said. 

"They need to comply," she said. "If not, we will use the full force of the law."

Canada gave U.S.-based Cleveland-Cliffs the green light to purchase Stelco back in 2024 under the Investment Canada Act.

Canada's approval of that takeover was contingent on the new owner maintaining the number of union jobs and the majority of non-union positions. 

Joly sent a letter to Stelco president Paul Simon on Monday demanding a plan outlining how Cleveland-Cliffs intends to comply with all of the undertakings it made to Ottawa when it acquired Stelco, including its jobs commitment.

Ottawa has not yet received a response from Stelco on the letter, Joly said. 

Speaking with reporters after question period, Conservative Party labour critic Kyle Seeback urged Joly to move quickly.

"When the minister is writing letters to actually say that she is going to sue, to enforce the covenants and contracts she has made with companies; we expect her to do that," Seeback said. "Because workers at Stelco cannot afford to wait." 

Meanwhile, Joly distinguished Stelco's planned job cuts from recent layoffs and plant disruptions in the auto sector, saying Cleveland-Cliffs made legally binding employment commitments when it acquired the steelmaker.

“These obligations are binding.”

This report by The Canadian Press was first published Oct. 7, 2026.

By Brett Bundale | Copyright 2026, The Canadian Press. All rights reserved.