Cleveland-Cliffs could be forced to sell Canadian assets if layoffs proceed, minister warns
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Stelco's U.S. owner Cleveland-Cliffs (CLF) could face legal action, including financial penalties or a forced sale of assets in Canada, if it proceeds with hundreds of layoffs, Canada's Industry Minister Melanie Joly warned Wednesday, according to The Globe & Mail.
Stelco said last month it planned to lay off up to 500 workers in Hamilton and Nanticoke, Ontario, saying it could not compete in the galvanized steel market as a result of the trade war with the U.S.
Joly has said the layoffs are a breach of Cleveland-Cliffs' (CLF) commitments when the federal government approved the Stelco acquisition in 2024, and the minister said Wednesday that she expects the company to uphold its commitments.
Joly said the government is examining its options under Section 40 of the Investment Canada Act, which could include financial penalties, a court order forcing the company to comply with its commitments, or an order requiring it to sell its Canadian assets.
"Everything is on the table," the minister said. "I'm always open to sit down with the company and find a solution, but we're looking at everything that is possible to keep jobs in Canada."
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