TORONTO — Industry Minister Mélanie Joly addressed the ongoing concerns regarding Stelco, a steelmaker based in Ontario, during a speech at the Canadian Club in Toronto. She firmly stated that Cleveland-Cliffs, the U.S.-based owner of Stelco, is obligated to fulfill job commitments made when it acquired the company. Failure to do so could result in Cleveland-Cliffs being forced to sell its Canadian operations.
In her remarks, Joly mentioned the potential for the federal government to take equity positions in strategic industries, aiming to preserve important manufacturing capabilities within Canada. However, she did not explicitly state that Ottawa was ready to take ownership of Stelco itself.
Joly criticized Cleveland-Cliffs for supporting U.S. tariffs, which she claims are detrimental to Stelco's operations in Canada. “Cleveland-Cliffs must uphold its commitments, full stop,” she asserted. The Minister emphasized that the Canadian government would explore all available legal options to ensure that Stelco remains operational and that jobs stay in Canada. She clearly warned that the company might have to divest its Canadian assets if the job commitments were breached.
Under the Investment Canada Act, Cleveland-Cliffs made legally binding commitments when it purchased Stelco in 2024. These commitments included maintaining at least the same number of unionized and most non-unionized employees for a period of five years. Despite these commitments, Stelco announced plans to lay off up to 500 workers across its Hamilton and Lake Erie facilities, citing a trade crisis, weak demand, and ongoing import pressure. The Hamilton operations, which produce cold-rolled steel and corrosion-resistant coated products, are essential for various industries, including automotive and construction.
Joly highlighted the significance of Stelco's production capabilities for the Canadian advanced manufacturing sector. She stated, “We must ensure that strategic production capabilities remain right here at home.” The government is prepared to provide financial support or take ownership stakes in critical industries to maintain jobs and production in Canada.
Regarding the timeline for resolving the dispute over Stelco's proposed layoffs, Joly indicated that it would be resolved “in a matter of days.” She confirmed that the government has engaged legal counsel to investigate potential actions against Cleveland-Cliffs, asserting that Stelco has breached its commitments under the Investment Canada Act.
According to Joly, the government believes there have been multiple breaches of commitments, which the Investment Canada Act provides mechanisms to address, including seeking enforcement through courts, imposing penalties, or ordering the sale of Canadian businesses. “We’re looking at all of these options,” she stated, reiterating her willingness to discuss solutions with Stelco but firmly stating that job cuts would not be permitted while steel continues to be shipped from the U.S. to Canada.
Stelco, originally founded in 1910 as the Steel Company of Canada, operated independently until 2007 when it was acquired by Pittsburgh-based U.S. Steel Corp. After entering creditor protection in 2014, Stelco was acquired by Bedrock Industries before being ultimately sold to Cleveland-Cliffs in 2024. Joly noted that Cleveland-Cliffs had originally come to Canada to be part of the solution, yet their support for U.S. tariffs is now endangering Canadian jobs.
