The CEO of an American company that acquired Stelco, a steelmaker in Hamilton, expressed readiness to engage in a legal battle with the Canadian government to uphold Stelco’s decision to lay off numerous employees. Cleveland-Cliffs CEO Lourenco Goncalves, in an interview on CBC’s Rosemary Barton Live, challenged the government’s claim that the company is breaching employment commitments mandated by the Investment Canada Act.
Industry Minister Mélanie Joly stated that Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to maintain the employment levels of unionized and non-unionized workers until 2029. However, Goncalves clarified that there is no contractual stipulation requiring a specific daily employment level, emphasizing that such a condition would have been unacceptable to him.
Stelco’s stance is that the layoffs are a temporary measure pending a trade agreement between Canada and the U.S., with the expectation that the jobs will eventually be reinstated. Goncalves also indicated willingness to consider selling the company and expressed support for U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges partly to these tariffs.
In response to an ultimatum from the Canadian government to present a plan to safeguard potentially affected jobs at the Hamilton plant, Stelco Inc. affirmed its intention to proceed with the layoffs and refuted the government’s assertion of a breach of commitments.
Goncalves voiced his backing for steel tariffs against Canada, citing the revitalization of the American steel industry by Section 232 tariffs. He mentioned a willingness to sell the company for a suitable offer while maintaining confidence in Stelco’s ability to contribute positively to Canada.
As layoffs unfold at Stelco, an employee, Jordan Williams, urged Goncalves to address workers’ concerns and provide a viable strategy for the future of steel operations in Hamilton. The layoffs are anticipated to span three weeks, with approximately 300 to 350 job cuts in Hamilton and additional layoffs at Stelco’s Lake Erie Works in Nanticoke, Ont.
United Steelworkers Local 1005 President Ron Wells highlighted the ongoing layoffs and suggested that Goncalves is keen to showcase the effectiveness of Trump’s tariffs ahead of U.S. midterm elections. Wells emphasized the importance of the federal government enforcing accountability to ensure compliance with commitments made.