The American owner of Stelco said laid off workers could be back on the job by Christmas. This comes on the heels of the company being given 15 days by Canada’s industry minister to provide a plan for the workers.
Ottawa is drawing the line with Stelco’s owner, Cleveland-Cliffs. The company had said it would lay off up to 500 workers at its Hamilton plant because of tariffs and market conditions. So far, 175 have been laid off, and now it’s CEO, Lourenco Goncalves, asked for a meeting with industry minister Melanie Joly.
But she isn’t budging.
"I sent him a letter this morning. He’s been wanting a meeting. My message to him is first, bring back the jobs, and then we’ll meet. I want a plan. I want a timeline, and I’m serious about it," Joly said. "You have commitments toward Canada and you have to make sure that you respect them."
Joly has already warned of severe penalties if Cleveland-Cliffs does not comply.
"If not, we’ll use the full force of the law," she said. "What does the law say? There is a potential forced divestiture option."
Joly was also surprised by a recent admission from Goncalves in an interview with the CBC.
"I bought Stelco because I could not afford any more having Stelco flooding the market here in the United States to the detriment of my own company," he said.
Goncalves said he plans to bring back all the laid off workers by Christmas if Stelco can boost sales to Canadian customers. But economist professor Colin Mang of McMaster University said that might not be so easy.
"The challenge for Stelco is that much of their material is sold on to either the auto industry or the construction industry," Mang said. "And both of those have struggled over the past year and a half. The auto industry, specifically, because of the tariffs from the United States."
Stelco’s workers have a new advocate in Keanin Loomis, who was elected mayor of Hamilton last week. Loomis said he wants to work to get the trade relationship with the U.S. back on track.
"Stelco is in the news right now, but it’s the whole community that relies on the steel industry," he said. "It’s the whole foundation of our identity as Canada’s Steel Town, and all the ancillary effects of that as well — all the other industries that are impacted."
In an economic update delivered last week, the government of Ontario Premier Doug Ford said the provincial deficit had grown to just under $17 billion, and the finance minister attributes that to the impact of the tariffs mainly on the steel, auto and manufacturing sectors, as well as global unrest on the price of gas.
Prime Minister Mark Carney and President Donald Trump talked trade over the weekend in a phone call. Both said it was a good conversation. There is optimism of momentum towards a trade deal, but it’s far too soon to speculate whether that would include any tariff relief for Canada’s steel industry.
