The chief executive officer (CEO) of the American firm that possesses Stelco, a steel manufacturer in Hamilton, stated his readiness to engage in a legal battle with the Canadian government to uphold Stelco’s decision to lay off numerous employees. In an appearance on CBC’s “Rosemary Barton Live,” Cleveland-Cliffs CEO Lourenco Goncalves challenged the government’s assertion that the company is breaching employment commitments mandated by the Investment Canada Act.
According to Industry Minister Mélanie Joly, Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to maintain the same number of unionized and non-unionized employees until 2029. Goncalves refuted this claim, emphasizing that there is no contractual obligation to sustain employment at a specific level daily for the entire five-year period. He reiterated that the layoffs are temporary until a trade agreement is reached between Canada and the United States, at which point the jobs will be reinstated.
Goncalves also indicated a willingness to sell the company and expressed support for U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges to tariffs. The Canadian government issued an ultimatum to Cleveland-Cliffs, demanding a plan to safeguard the potentially affected jobs at the Hamilton plant or face legal repercussions. Prime Minister Mark Carney vowed to utilize all available powers against the company.
In response to the government’s threats, Stelco Inc. affirmed its decision to proceed with the layoffs and dismissed allegations of breaching commitments as inaccurate. The company attributed its predicament to external factors, such as the impact of President Donald Trump’s steel tariffs. Despite this, Goncalves voiced his support for tariffs against Canada, emphasizing their positive impact on the American steel industry.
Regarding the possibility of selling the company, Goncalves stated his openness to a suitable offer while maintaining his belief in Stelco’s potential to contribute positively to Canada. He expressed regret over the strained trade relations between Canada and the U.S., highlighting that he would not have acquired Stelco under current circumstances.
Layoffs are currently in progress, with Stelco employee Jordan Williams urging Goncalves to address workers’ concerns and provide a viable plan for the future of Hamilton’s steel operations. Union president Ron Wells confirmed the ongoing layoffs, expected to unfold over three weeks, with a significant number anticipated in Hamilton and at Stelco’s Lake Erie Works in Nanticoke, Ontario. Wells criticized Goncalves’ support for Trump’s tariffs as a political strategy ahead of U.S. midterm elections, emphasizing the importance of government intervention to ensure accountability.