Stelco pushes back on Ottawa amid threats of legal action over layoffs - BERITAJA

Stelco has reportedly pushed backmost connected accusations it breached its statement pinch the national government, saying they are “false,” and it “stands fresh to protect its interests.”

This comes arsenic Stelco originates laying disconnected hundreds of workers, and faces threats of ineligible action from the national authorities if those jobs are not preserved.

The Ontario-based alloy shaper sent a missive responding to Industry Minister Melanie Joly aft she sent a missive to Cleveland-Cliffs, the U.S.-based institution which acquired Stelco successful 2024. She besides gave the institution 5 days to respond.

Cleveland-Cliffs told BERITAJA it sent a missive successful consequence to Joly’s agency connected Oct. 9, though the consequence was not initially shared publicly.

Stelco’s missive to Joly, which was written by the company’s president and wide counsel, Paul Simon, was shared pinch BERITAJA Monday via a root who asked not to beryllium named.

“Through our regular contact, the authorities has had important beforehand announcement of the effect these unprecedented marketplace conditions person had connected our business, and successful much caller communications making love backmost to July 2026,” the missive said.

“Our early September meetings pinch respective elder authorities officials, including representatives from your office, led Stelco to judge that the authorities understood the marketplace realities confronting Stelco’s Hamilton Works finishing lines.”

Stelco, for illustration Algoma and different Canadian alloy manufacturers person been deed difficult by U.S. tariffs of 50 per cent connected Canadian alloy imports, which led to a steep diminution successful income to U.S. customers. The institution said these marketplace conditions person forced it to layoff up to 500 workers.

Joly responded connected societal media connected Oct. 10 aft reportedly receiving the missive from Stelco.

“The Government of Canada continues to expect Stelco to meet its legally binding commitments to employees. These commitments were agreed upon arsenic undertakings nether the Investment Canada Act and do not cease to use because of changing business strategy aliases marketplace conditions,” said Joly successful the statement.

“As our ineligible squad reviews the Stelco letter, each options are connected the table.”

Canada gave U.S.-based Cleveland-Cliffs the go-ahead to acquisition Stelco backmost successful 2024 nether the Investment Canada Act (ICA), which regulates overseas takeovers.

Speaking successful the missive to Stelco past week, Joly said Canada’s support of the woody was contingent connected the caller proprietor maintaining the number of national jobs and the mostly of non-union positions.

Those conditions don’t expire conscionable because “business strategy aliases marketplace conditions person changed,” she added.

“This is peculiarly applicable here, wherever Cleveland-Cliffs has cited waste and acquisition disruptions arsenic affecting its operations astatine Hamilton Works, notwithstanding its main executive officer’s nationalist support for Section 232 tariff measures,” Joly said.

Stelco pushed backmost connected Joly’s accusations successful its letter, and said it “remains successful compliance” pinch the undertakings successful the statement from 2024.

“Stelco submitted its yearly study confirming its compliance pinch the employment undertakings successful November 2025. That study highlighted that Stelco was facing important challenges owed to the unforeseen consequences stemming from unprecedented U.S. tariffs and Canada’s nonaccomplishment to beforehand an effective ‘Fortress North America’ waste and acquisition regime,” the missive said.

“Your practice that Stelco’s planned layoffs origin it to breach its undertakings is mendacious arsenic the undertakings do not stipulate a committedness to debar layoffs.”

When the layoffs were first announced past month, Prime Minister Mark Carney said the institution “betrayed” Canadian workers and insisted “there’s money connected the table” to support labor connected the job.

In an exclusive question and reply pinch BERITAJA from Sept. 30, Lourenco Goncalves, the president and CEO of Cleveland-Cliffs, said the company’s determination was purely market-driven and that financial incentives could not hole the basal issues.

“I’m not shutting down, I’m not dismantling,” Goncalves said during a 10-minute telephone call. “There’s nary marketplace successful Canada for the magnitude of galvanized alloy we nutrient successful Canada. We request to export… to the United States.”

“Until we reestablish that, there’s thing we could do, nothing.”

The national representing the about 500 alloy workers facing imaginable layoffs, USW Local 1005, said it was not consulted nor did it person an opportunity to reappraisal those undertakings successful the ICA.

“We were assured by some Cleveland Cliff’s and the Federal Government that bargaining portion employment levels would stay the aforesaid for 5 years. In different words nary layoffs,” said the union’s president Ron Wells successful a statement.

“Although we weren’t privileged to the signed statement betwixt Cliff’s and the Government, the consequence reeks of desperation arsenic the original mentation of Stelco being victims of Trump’s alloy tariffs wasn’t flying.”

Stelco, successful the missive to Joly, denied wrongdoing, and based connected the accusation presented to the national authorities passim the waste and acquisition war, and the government’s ain guidelines, the institution said:

“In a business specified arsenic this, Stelco should not beryllium responsible for immoderate non-compliance pinch its undertakings. Stelco stands fresh to protect its interests accordant pinch the Investment Canada Act and its guidelines.”

BERITAJA sent requests for remark to Stelco and Cleveland-Cliffs, but neither responded by publication.

– With files from BERITAJA’ Colin D’Mello and BERITAJA