VideoEnergy & Economy
Carney accuses Cleveland-Cliffs of betraying Stelco's job promise to Canada
With up to 500 Hamilton and Nanticoke jobs at risk, the case tests whether a $3.4 billion takeover's binding promises to Canada can be enforced.
Summary
Mark Carney said in Vancouver that Cleveland-Cliffs had betrayed Canada, pointing to binding commitments the U.S. steelmaker made when it bought Stelco for $3.4 billion in 2024. Ottawa approved that takeover in October 2024 on conditions, including a five-year pledge to keep Stelco's head office in Hamilton, honour collective agreements and maintain at least the same number of unionized workers.
The cuts follow a 50% U.S. tariff on Canadian steel. The video says demand in Stelco's traditional markets fell nearly 25% compared with 2024, and the company plans to idle cold-rolled and galvanized lines at Hamilton Works, affecting up to 500 jobs across Hamilton and Nanticoke. Cleveland-Cliffs says total output will hold and Hamilton workers will be offered positions in Nanticoke, while the union notes only 46 openings existed there. Ottawa offered financial help first.
The Investment Canada Act gives Ottawa a legal route. Under section 39 the minister can issue a formal demand, and under section 40 the government can take the company to superior court. The video recalls that in 2009 Ottawa used this route against U.S. Steel, which settled in 2011 by committing to at least $50 million in new investment. The full undertaking text has not been made public, so its wording will matter.
Key points
- Cleveland-Cliffs bought Stelco for $3.4 billion, approved in October 2024 with 5-year undertakings.
- Stelco says demand in its traditional markets fell nearly 25% compared with 2024.
- Up to 500 jobs are affected across Hamilton Works and Lake Erie Works in Nanticoke.
- Only 46 openings existed at Nanticoke, against roughly 350 Hamilton layoffs, according to United Steelworkers Local 105.
- Section 39 lets the minister issue a formal demand; section 40 allows the government to take the company to superior court.
- U.S. Steel settled in 2011 after Ottawa's Investment Canada Act lawsuit, committing $50M+ in new investment.
Questions answered
Why does Mark Carney say Cleveland-Cliffs betrayed Canada over Stelco?
The video says Carney accused the company of betrayal and pointed to legal obligations on employment under the binding undertakings Ottawa approved in October 2024. It also notes that a breach is not yet proven, because the full agreement has never been made public.
What does the 46 openings number mean in the Stelco layoffs?
According to Ron Wells, president of United Steelworkers Local 105, Nanticoke had 46 openings when the layoffs were announced, against roughly 350 Hamilton layoffs. The video says Nanticoke is also expected to lose 60 to 80 union members. If that gap does not close, the company's headcount defence becomes hard to make.
What are sections 39 and 40 of the Investment Canada Act?
Under section 39, the minister can issue a formal demand asking the company to fix a default or explain why there isn't one. If the answer does not satisfy Ottawa, section 40 lets the government take the company before a superior court. Ottawa used this route against U.S. Steel in 2009.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work