Carney says Cleveland-Cliffs making ‘mistake’ by not respecting obligations

Posted October 29, 2026 1:50 pm

2 min read

1:41 ‘Bring back the jobs and then we’ll meet’: Joly prepared for talks with Stelco representatives

Prime Minister Mark Carney said Thursday that Cleveland-Cliffs would be making a “mistake” by not respecting its obligations and commitments, as the U.S.-based owner of Stelco faces potential legal action from the federal government over their laying off of up to 500 Canadian steelworkers.

The comments came at an event in Ottawa when Carney was asked by a reporter if, given what has transpired in recent weeks, the federal government felt it was a mistake to allow Cleveland-Cliffs to acquire Stelco in 2024.

“The mistake here would be Cleveland-Cliffs not respecting the obligations, the commitments that they made in the acquisition,” Carney said in response.

The agreement from 2024, of which only a summary has been shared publicly, includes several legally binding commitments Cleveland-Cliffs and Stelco must maintain, including for employment to be at or above levels measured at the time the agreement was created until 2029.

Story continues below advertisement

When pressed for more on Thursday, Carney declined to comment further because there is now a legal process heading before the courts. He added that he would reserve his comments for “some other time.”

Related Videos

This comes just hours after Global News obtained a letter, dated Oct. 29, from Industry Minister Mélanie Joly and addressed to Stelco’s president, Paul Simon. In the letter, Joly said she expects a “concrete and credible plan for re-engagement with these workers.”

Get daily National news

Get daily Canada news delivered to your inbox so you'll never miss the day's top stories.

While arguing the company has not broken its agreement with the federal government, Cleveland-Cliffs has also argued they “should not be responsible for impacts of external factors beyond their control,” including U.S. tariffs on Canadian steel.

Speaking to reporters Thursday, Joly reiterated that Cleveland-Cliffs and its CEO, Lourenco Goncalves, have actively supported the U.S. tariffs and must “face the consequences” they have on the Canadian market.

Story continues below advertisement

Joly said she reviewed an interim compliance report that was provided by Stelco on Oct. 26 but said the report was “far from satisfactory.”

“It does not alter my belief that Stelco and Cleveland-Cliffs are not in compliance with their undertakings under the Investment Canada Act as set out in my October 22 section 39 demand,” she said in the most recent letter.

According to the union representing Stelco’s laid-off workers, about 175 have been let go so far, but an internal memo said that could increase to about 500.

Separately, Cleveland-Cliffs CEO Lourenco Goncalves reportedly told The Canadian Press Wednesday that laid off Stelco workers could be recalled by the holidays provided sales of Canadian steel increase.

“It will depend on Canadian customers buying Canadian steel, made by Stelco,” he said in a statement, adding: “If our plan works, my intention is to call back all the 175 workers before Christmas.”

– with files from Global’s Rachel Morgan, Mackenzie Gray and The Canadian Press