Ottawa demands plan to restore Stelco jobs before meeting Cleveland-Cliffs CEO

Industry Minister Mélanie Joly is calling on the U.S.-based owner of Stelco Inc. to provide a concrete plan and timeline to restore jobs at its Canadian steel mills before she will agree to meet with CEO Lourenco Goncalves.

Cleveland-Cliffs says it’s in full compliance with the promises it made as part of an Investment Canada Act review that allowed its purchase of Stelco in 2024.

The company also says Stelco has requested a meeting between Joly and Goncalves to talk about a path toward resuming full employment for workers who have been temporarily laid off.

Joly told reporters Tuesday that the government wants a plan to bring back laid off workers before she will sit down with the head of Cleveland-Cliffs.

She says the Ohio-based company has not respected its binding commitments, including a five-year commitment to maintain at least the same number of unionized workers and most non-unionized employees as when the deal was struck.

Joly says Ottawa could still take the company to court to enforce its commitments, seek financial penalties or require the sale of Stelco.

Cleveland-Cliffs has rejected Ottawa’s allegations, maintaining that it has met all its commitments.

“The facts are clear,” Goncalves said in a statement. “We made serious commitments to Canada when we acquired Stelco, and we have honoured them.”

He added that Stelco is in full compliance with all undertakings and in several important areas has even gone beyond what it committed to do.

“For galvanized products, the imports of non-automotive galvanized steel that continue to flood the Canadian market remain problematic,” he said

“We want to find a solution for Hamilton and its workers as soon as possible and believe common sense trade policy will make this a reality.”

Joly has accused Cleveland-Cliffs of failing to honour six binding commitments made when it purchased the Ontario steelmaker.

The minister has said the company must address its alleged violations, prove it has not broken its commitments or explain why it has failed to meet them.

However, in a letter to Joly, the company says it’s in full compliance with each of its 34 undertakings, including its promises regarding employment levels.

The company says Stelco will update its compliance report following the Oct. 31 close of the current reporting period.