Canada Threatens Cleveland-Cliffs Sale Over 500 Stelco Layoffs
Melanie Joly, Canada’s industry minister, said the company must live up to the employment pledges it made when it bought Stelco in 2024. Speaking at the Canadian Club in Toronto, she delivered the ultimatum bluntly.
“They must keep the jobs in Canada or face the prospect of having to sell their Canadian assets,” Joly said during a speech at the Canadian Club in Toronto.
The remarks escalate an earlier threat from Ottawa to take legal action over the layoffs. Asked afterward how seriously the government was preparing, Joly pointed to its legal team.
“We hired the best lawyers in town over this weekend,” Joly told reporters after the speech.
Ottawa says job-retention commitments were a condition for approving Cleveland-Cliffs’ takeover of Stelco under the Investment Canada Act in 2024.
Steelmaker Blames US Tariffs
Cleveland-Cliffs Chief Executive Officer Lourenco Goncalves hit back in an interview Thursday with a Canadian business news channel, condemning the government’s stance. He accused Ottawa of using “bullying and harassment” tactics against the company.
Goncalves maintained that the job cuts would be temporary and said they were unavoidable given the tariffs that US President Donald Trump’s administration has imposed on Canada.
Joly rejected that framing, saying the government’s goal is to shield Canadian workers and hold foreign investors to their word. She framed the dispute as a signal to the wider business community.
“We’re sending a message for foreign companies that of course we’re open for business. But if you come and invest in our country, you have to abide by your commitments,” she said.
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