Cleveland-Cliffs says it has complied with Stelco job commitments, requests meeting with Joly

OTTAWA – Cleveland-Cliffs Inc. CEO Lourenco Goncalves stands by its job compliance, despite layoffs at steelmaker Stelco, and requested a meeting with Industry Minister Mélanie Joly.

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“We made serious commitments to Canada when we acquired Stelco, and we have honoured them,” said Goncalves, in a press release. “Stelco is in full compliance with all undertakings, and in several important areas we have gone beyond what we committed to do.”

Cliffs sent a letter to Joly on Monday evening, in response to a letter she sent on Oct. 22. Joly has threatened legal action against Cliffs if it does not reverse the 500 layoffs announced at Stelco’s Hamilton plant and Lake Erie Works in Nanticoke, Ont. or provide evidence that justifies why it remains in compliance.

That Oct. 22 letter outlined that Joly had determined that Cliffs was in contravention of its employment undertakings that it signed when its acquisition of Stelco was approved by the Government of Canada under the Investment in Canada Act in 2024.

Those undertakings included ensuring average aggregate annual employment of unionized employees remained no lower than 1,766 and salaried employees remain no lower than 603.

“For the current reporting period, Stelco expects average annual employment of at least 1,879 bargaining unit full-time equivalent employees, 113 above the required level of 1,766,” the Cliffs press release said.

“Salaried employment is expected to average at least 627 full-time equivalent employees, compared with the required level of 603,” it read.

Joly told reporters Tuesday she would like to see a plan to rehire workers at Stelco before a meeting can happen.

“My message to the CEO of Cleveland Cliffs is clear,” she said on her way into a cabinet meeting in Ottawa.

“First and foremost, what I want is a plan to bring back the jobs, and I want a timeline, and of course I’m always willing to sit down, but that’s the first condition,” she added.

Joly said the government’s position remains that Cliffs has violated the job commitment undertakings. She also said Cliffs has failed another undertaking in advocating for tariff-free access for Canadian steel to the U.S.

Joly and Prime Minister Mark Carney have both noted that Goncalves is a supporter of U.S. President Donald Trump’s Section 232 tariffs.

In its letter to Joly, Cliffs pointed out the Canadian government’s trade shift in regards to Chinese electric vehicles and investment is a source of irony, given it was one of the undertakings Cliffs signed back in 2024.

“Stelco also confirmed compliance with undertaking 13, which covers advocacy for trade policy,” the press release said. “Ironically, one element of that undertaking calls on Cleveland-Cliffs to confront Chinese electric vehicle subsidies and inbound Chinese investment, an objective that has since been complicated by the Government of Canada’s own change in policy toward Chinese EVs.”

Cliffs said it plans to update its compliance report on Oct. 31.

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

The industry minister did not rule out taking Cliffs to court on Tuesday. In her Oct. 22 letter, Joly outlined possible outcomes of court action including Cliffs’ divestiture from Stelco, a directive to comply with the undertakings, a penalty of $10,000 each day Cliffs is not in compliance or suspending Cliffs’ voting rights in the company.

Last week, she told reporters that there are interested buyers in Stelco’s Canadian assets.

National Post

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