VideoEnergy & Economy
Ottawa demands Stelco recall laid-off workers before any meeting with Cleveland-Cliffs
With 175 Hamilton workers laid off, Ottawa's Investment Canada Act deadline for Cleveland-Cliffs runs out in early November, and possible penalties or a forced sale loom.
Summary
Cleveland-Cliffs bought Stelco in November 2024 for about $3.4 billion, and Ottawa approved the deal with 34 binding undertakings, including a promise to keep unionized jobs through 2029. Since September, Stelco has idled finishing lines in Hamilton and cut back at Lake Erie Works, and 175 workers have been laid off in Hamilton. The company points mainly to the 50% US tariff on Canadian steel.
Ottawa escalated from a five-day ultimatum in early October to a formal Investment Canada Act demand on October 22, with 15 days to comply. Cleveland-Cliffs says Stelco is in full compliance with all 34 undertakings and asked for a meeting with Industry Minister Mélanie Joly. Joly called the company's report far from satisfactory and said laid-off workers must be recalled immediately, with a credible plan and timeline first.
The video argues Canada's position is stronger than the headlines suggest. The company's $1,100 profit-sharing cheque and its CEO's comments that Cliffs could earn more with Stelco inside the group weaken the claim that the business is unprofitable. Prime Minister Mark Carney said the mistake would be Cliffs failing to honour its commitments, and the matter is now heading to court. For Canada, the case tests whether a signed promise means the same for every foreign owner.
Key points
- Cleveland-Cliffs bought Stelco in November 2024 for about $3.4 billion, subject to 34 binding undertakings from Ottawa's approval.
- One undertaking promises to keep unionized jobs through 2029.
- 175 workers have been laid off, all in Hamilton; up to 500 jobs were flagged as affected.
- Ottawa's formal Investment Canada Act demand was issued October 22, with 15 days to comply.
- Cleveland-Cliffs says Stelco is in full compliance with all 34 undertakings and is doing better than promised in several areas.
- Possible consequences include financial penalties or a court-ordered sale of Stelco.
Questions answered
Why is Ottawa in a dispute with Cleveland-Cliffs over Stelco?
Ottawa says Cleveland-Cliffs is not complying with 34 binding undertakings it accepted when buying Stelco in 2024, including keeping unionized jobs through 2029. The company says Stelco is in full compliance. 175 workers have been laid off in Hamilton.
What is the deadline in the Stelco case?
Ottawa's formal Investment Canada Act demand was issued October 22, with 15 days to comply, so the deadline falls in the first week of November. If the demand is not met, Ottawa could go to court seeking financial penalties or a court-ordered sale of Stelco.
What does Mélanie Joly want before meeting Cleveland-Cliffs?
Industry Minister Mélanie Joly says workers who have been laid off or received layoff notices must be recalled immediately. She wants a concrete and credible plan to bring them back, with a timeline, and says she is willing to sit down, but recalling workers is the first condition.
Why are Stelco workers getting profit-sharing cheques if the company says it is not profitable?
The video reports a $1,100 profit-sharing cheque is headed to workers at Stelco's Hamilton plant, though the company has said the business is not profitable. The video argues the galvanized lines can lose money while Stelco as a whole earns enough to pay a bonus.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work