The CEO of the American firm that owns Stelco, a steelmaker based in Hamilton, is ready to challenge the Canadian government in court over Stelco’s decision to lay off numerous employees. Cleveland-Cliffs CEO Lourenco Goncalves, speaking on CBC’s “Rosemary Barton Live,” disputed the government’s assertion that the company is breaching employment commitments under the Investment Canada Act.
Industry Minister Mélanie Joly had stated that Cleveland-Cliffs’ acquisition of Stelco in 2024 included commitments to maintain the same number of unionized and non-unionized employees until 2029. Goncalves clarified that the contract does not require a specific level of employment daily for the entire five-year period.
Stelco maintains that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., with the intention to rehire the affected workers. Goncalves also expressed openness to selling the company and endorsed U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges to tariffs.
In response to an ultimatum from the Canadian government, demanding a plan to save up to 500 jobs at the Hamilton plant, Stelco stated that it will proceed with the layoffs, refuting the government’s claim of a breach in commitments. The company highlighted external factors, such as U.S. President Donald Trump’s tariffs, as contributing to its situation.
Goncalves affirmed his support for steel tariffs against Canada, emphasizing their positive impact on the American steel industry. He indicated willingness to sell the company for the right offer while expressing belief in Stelco’s ability to remain a valuable entity in Canada.
As layoffs commence, a Stelco employee, Jordan Williams, urged Goncalves to address workers’ concerns and present a viable plan for the future of Hamilton’s steel operations. United Steelworkers Local 1005 President Ron Wells confirmed ongoing layoffs and anticipated further job losses over three weeks in Hamilton and Nanticoke.
Wells criticized Goncalves for seeking to showcase the effectiveness of Trump’s tariffs ahead of U.S. midterm elections, emphasizing the importance of the federal government holding Cleveland-Cliffs accountable.