VideoEnergy & Economy
Joly sets five-day deadline for Cleveland-Cliffs over Stelco layoffs
Up to 500 Hamilton jobs are at risk, and a 2009 lawsuit shows how Ottawa can enforce foreign investors' written promises to Canada.
Summary
Ottawa has given Cleveland-Cliffs, the American owner of Stelco, five business days to produce a plan to protect jobs after up to 500 layoffs were announced in Hamilton. Mélanie Joly warned that the company could face court if it misses the deadline. The video frames this as a rematch of 2009, when Ottawa sued U.S. Steel over commitments it made when buying Stelco in 2007.
In 2007, U.S. Steel bought Stelco for about US$1 billion and signed legally binding undertakings to keep employment levels and raise steel production. After the 2008 downturn, more than 1,500 Canadian workers were laid off, and Ottawa filed suit in July 2009. U.S. Steel argued it only had to comply by the end of its three-year term. The case ended in a 2011 out-of-court settlement, and the video notes Canada later strengthened the Investment Canada Act.
The 2024 approval of Cleveland-Cliffs' $3.4 billion Stelco deal came with a promise to keep at least the same number of unionized employees in Canada for five years. Joly's letter argues those commitments do not lapse simply because business strategy or market conditions have changed. The video also says a court could order a sale of the business, though a settlement with new commitments remains possible.
Key points
- Up to 500 Stelco layoffs were announced in Hamilton, and Joly gave the company five business days to produce a jobs plan.
- In 2007, U.S. Steel bought Stelco for about US$1 billion, with written undertakings to keep employment levels.
- More than 1,500 Canadian workers were laid off in 2008-09 after the downturn; Ottawa filed its lawsuit in July 2009.
- The 2011 out-of-court settlement included a $50 million capital investment commitment.
- In 2024, Ottawa approved Cleveland-Cliffs' $3.4 billion Stelco deal with a five-year unionized headcount promise.
- Daily fines for breaking an undertaking were raised to $25,000, and the video calls this only the second public case of its kind.
Questions answered
Why did Ottawa give Cleveland-Cliffs a five-day deadline over Stelco?
Mélanie Joly gave Cleveland-Cliffs five business days to produce a plan to keep jobs after up to 500 Stelco layoffs were announced in Hamilton. The video says Ottawa could go to court if the company misses the deadline.
What happened in the 2009 Stelco lawsuit against U.S. Steel?
Ottawa sued U.S. Steel in July 2009 after more than 1,500 Canadian workers were laid off during the 2008 downturn. U.S. Steel argued it only had to comply by the end of its three-year term. The case settled out of court in 2011, and Ottawa withdrew the lawsuit.
Can a court force the sale of a company like Stelco?
The video says a court has wide powers in a case like this, and one of them is ordering a business put up for sale. Joly's letter lists a sale of the business among the remedies Ottawa could seek. The video says a settlement with new commitments is also possible.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work