Steelmaker Cliffs defends Stelco cuts, seeks Joly meeting

Steelmaker Cleveland-Cliffs Inc. again defended its decision to idle a steel plant in Ontario in a letter to the Canadian government on Monday, saying it’s in compliance with the commitments it made when it bought the asset.

Cliffs’ subsidiary Stelco Inc. submitted an updated compliance report to Industry Minister Mélanie Joly, the company said. It expects average annual employment of at least 1,879 unionized full-time-equivalent workers during the current reporting period, above the 1,766 required under the 2024 acquisition agreement. Salaried employment is expected to average at least 627, compared with a requirement of 603.

The letter comes amid an escalating dispute over Stelco’s plans to indefinitely idle cold-rolled and coated steel operations at its Hamilton Works facility, affecting as many as 500 workers across its Ontario operations. Cleveland-Cliffs has blamed United States tariffs and weak demand for the products, while the Canadian government says the layoffs violate employment commitments made when the U.S. company acquired Stelco in 2024.

Joly said Tuesday that the government received the letter and its message to Stelco remains clear.

“First and foremost, what I want is a plan to bring back the jobs and I want a timeline. And of course I’m always willing to sit down, but that’s the first condition,” she told reporters in Ottawa.

The government’s position is still that Cleveland-Cliffs and Stelco have not respected their undertakings, she said. They haven’t maintained job numbers and they also “had a clear commitment to make sure that there would be advocating in favor of tariff-free access of Canadian steel to the U.S.,” she said.

Joly warned last week that the government could pursue legal action if Cleveland-Cliffs fails to address alleged violations within 15 days, potentially seeking a court order requiring the company to sell its Canadian operations. Cliffs has disputed Ottawa’s interpretation of its commitments, arguing that the agreement requires it to maintain average annual employment levels rather than prevent layoffs on any given day.

The company said chief executive Lourenco Goncalves and Stelco requested a meeting with Joly on Oct. 23 to discuss restoring full employment for 175 workers in Hamilton who have been temporarily laid off. The minister has not yet responded to the request, the company said.

— With assistance from Brian Platt and Laura Dhillon Kane.