Union calls Stelco layoff rationale 'disingenuous and contradictory'

Stelco Holdings Inc.'s U.S. parent company is being “disingenuous and contradictory” by blaming its planned layoff of up to 500 workers on the trade war, the steelworkers' union said Thursday. 

United Steelworkers Locals 1005 and 8782, which represent Stelco workers at steel plants in Hamilton and Nanticoke, Ont., said Cleveland-Cliffs chief executive Lourenco Goncalves has publicly supported U.S. tariffs on Canadian steel.

In a joint statement, the presidents of both locals said the company is attempting to "shift blame" for its own decisions onto the broader trade dispute and ensuing market conditions.

Cleveland-Cliffs is "obscuring their own role in manufacturing this crisis," Ron Wells and John McElroy said.

They pointed to Goncalves' public comments that his "fingerprints" are on the 50 per cent tariffs on Canadian steel.

Cleveland-Cliffs made legally binding job promises under the Investment Canada Act when it bought Stelco in 2024, including maintaining at least the same number of unionized workers for five years.

But investors are not held accountable when non-compliance is clearly caused by factors beyond their control, according to the act's guidelines. 

The steelworkers’ union argues the exception does not apply to the planned job cuts at Stelco because Goncalves has publicly claimed that he influenced the 50 per cent tariff rate.

Stelco said earlier this week that the idling of finishing operations at its Hamilton plant is a response to weaker demand and continued pressure from steel imports.

However, it stressed that overall steel tonnage will not decline and that a "significant number" of affected Hamilton employees are expected to be offered jobs at the Lake Erie plant in Nanticoke.

Wells said only about 40 of the laid-off workers in Hamilton have been offered a position in Nanticoke.

The company did not immediately respond to a request for comment on the union’s statement.

The steelworkers’ union is urging Ottawa to enforce the investment act rules against Cleveland-Cliffs over alleged breaches of its commitments.

"With the announced layoffs, Cleveland-Cliffs have violated the Investment Canada Act and have betrayed the Canadian people," the two union presidents said.

"The federal government must take immediate steps to ensure that Cleveland-Cliffs cannot violate their obligations to Canadian workers and families with impunity."

Industry Minister Mélanie Joly said in an interview on Wednesday that the government is evaluating all of its options. 

"Everything is on the table because there were clear commitments that were made under the Investment Canada Act" but the company has not abided by them, she said. 

Prime Minister Mark Carney expressed his disappointment at a news conference Tuesday regarding the move by Stelco, saying workers have been "betrayed by the company." 

He added: "We intend to use all powers that we have and pursue them to the fullest extent of the law."

This report by The Canadian Press was first published Oct. 1, 2026.

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