VideoEnergy & Economy
Ottawa calls lawyers over Stelco owner's TV confession with nine days left
Cleveland-Cliffs must show a concrete plan to recall 175 laid-off Hamilton steelworkers, or Ottawa may turn to court over binding Investment Canada Act commitments.
Summary
Cleveland-Cliffs bought Stelco in 2024 for about $3.4 billion. Ottawa approved the deal under the Investment Canada Act with binding commitments, including on employment. In September, Stelco warned that up to 500 workers could be affected by idled lines in Hamilton and at its Lake Erie plant. The company's explanations have since shifted, from a lack of Canadian demand to dumped offshore imports.
Prime Minister Mark Carney accused the company of betraying Canadian workers, citing the CEO's praise for Trump's 50% steel tariffs. Industry Minister Melanie Joly said the commitments remain binding even when market conditions change. Federal figures showed more than 625,000 tonnes of coated steel entered Canada in the first nine months of 2026, 54% of it from the United States. Later that day, the CEO told national television he bought Stelco to stop it flooding the US market. Joly has passed his words to government lawyers, calling them confessions.
In a written statement, CEO Lourenco Goncalves said layoffs were 175, not 500, that Stelco is not for sale, and that he hopes to recall workers before Christmas. Joly will not meet until the company delivers a concrete plan with a timeline. With nine days left, Canadian buyers may be the key to bringing the jobs back.
Key points
- Cleveland-Cliffs bought Stelco in 2024 for about $3.4 billion, with approval under the Investment Canada Act.
- Up to 500 workers were warned in September; the company now says 175 were laid off.
- 625,000+ tonnes of coated steel were imported into Canada in the first nine months of 2026.
- 54% of those imports came from the United States.
- Canada raised tariffs on certain U.S. steel, including galvanized, to 50% on September 8.
- In 2009, Ottawa launched its first-ever court action under the Investment Canada Act, against U.S. Steel over Stelco.
Questions answered
What did Stelco's owner say that angered Ottawa?
In a national TV interview, Cleveland-Cliffs CEO Lourenco Goncalves said he bought Stelco because he could not afford to have it flooding the US market. Industry Minister Melanie Joly called his comments confessions and passed them to government lawyers, saying they could influence the enforcement action already underway.
How many Stelco workers have been laid off?
Stelco warned in September that up to 500 workers could be affected. The CEO now says 175 were laid off and hopes to recall them before Christmas if Canadian sales plans succeed. Joly says she will not meet until the company delivers a concrete plan with a timeline.
Why did Ottawa take US Steel to court in 2009?
In July 2009, Ottawa went to federal court to enforce commitments US Steel made when it bought Stelco in 2007. It cut back when the 2008 recession hit. It was the first court order the government had ever sought under the Investment Canada Act. It settled in December 2011, giving new commitments.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work