Canada’s industry minister has again given the American owner of Stelco a deadline over job commitments at its Hamilton plant.
The new warning comes as Stelco continues with plans to lay off as many as 500 workers.
Melanie Joly said Cleveland-Cliffs, the Stelco owner, has 15 days to live up to its job commitments — or face legal action.
The company has already laid off about 200 workers and shows no indication of ending or reversing.
Ottawa insists Cleveland-Cliffs committed to keeping the number of unionized jobs in Hamilton when it acquired Stelco in 2024.
"I have determined that there is a breach of the undertaking," Joly said. "But also we detail how and we present the evidence. So that’s why it’s a necessary process to force them to comply."
Cleveland-Cliffs owner Laurenco Goncalves has said the layoffs are temporary and necessary because of tariffs and market conditions. But Joly insists the company is breaking its commitment and could face penalties or even be forced to sell its Canadian assets.
"In the options, forced divestiture is definitely on the table," she said. "And we already know there are some potential buyers that are interested in buying the Canadian assets of Stelco. But that being said, first and foremost Cleveland-Cliffs has obligation; they need to abide by their undertakings."
The company has said it would fight the issue in court but has not commented on Joly’s latest letter. The steelworkers union says it stands behind Joly’s actions.
