Stelco's American owner backs the tariffs his company blames for Hamilton layoffs

Summary

Cleveland-Cliffs bought one of Canada's oldest steelmakers, Stelco, in 2024 under Investment Canada Act conditions. The owner committed to keep at least the same number of unionized employees through 2029. Layoff notices are now moving through Hamilton, with the union expecting 300 to 350 cuts there. Mélanie Joly says up to 500 Hamilton jobs are at risk and gave Stelco 5 days to present a plan or face legal action.

CEO Lourenco Goncalves told CBC's Rosemary Barton that no contract provision requires a fixed headcount every day of the five years, which the video reads as confirming the commitment while disputing how it is counted. He backed Section 232 tariffs, called the layoffs temporary until a Canada-U.S. trade deal, and said yes to selling for a good offer.

For the Canadian view, the video stresses Ottawa's legal tools. Under the Investment Canada Act, the minister can demand compliance and go to court, where a judge can impose penalties or, in serious cases, order a sale. Hamilton's history is the warning: Ottawa took U.S. Steel to court in 2009, a 2011 settlement followed, and Hamilton steelmaking still shut down on the last day of 2013.

Key points

• Cleveland-Cliffs bought Stelco in 2024 under Investment Canada Act conditions.
• Employment undertakings run through 2029 and cover unionized staff and most non-union employees.
• The union expects 300 to 350 layoffs in Hamilton, with more at Lake Erie Works in Nanticoke.
• Minister Mélanie Joly says up to 500 Hamilton jobs are at risk and gave Stelco 5 days to present a plan.
• U.S. steel tariffs sit at 50%, which Stelco cites among factors beyond its control.
• Hamilton steelmaking shut down on the last day of 2013, after a 2009 case over broken commitments.

Questions answered