Canada’s minister of industry stated on Wednesday that Stelco Holdings Inc. cannot use the trade war as a reason to justify cutting jobs that it had committed to maintaining after purchasing the steel plant in Hamilton. This stance was particularly emphasized as the CEO of its American parent company has publicly supported steel tariffs.
Melanie Joly highlighted that the CEO of Cleveland-Cliffs, the U.S.-based parent company, has openly endorsed steel tariffs, making it difficult for the company to attribute the planned layoff of up to 500 workers to tariffs and market pressures beyond its control.
Joly stressed that the company must provide a detailed plan to the federal government outlining how it will uphold all its commitments, including the retention of over 1,500 jobs. Failure to comply will lead the government to take enforcement measures, she warned.
The approval for U.S.-based Cleveland-Cliffs to acquire Stelco in 2024 was granted by Canada under the Investment Canada Act. This approval was conditional on the new owner maintaining the existing union jobs and a majority of non-union positions, as outlined by Joly.
Despite sending a letter to Stelco’s president requesting a compliance plan, Ottawa has not yet received a response from the company. Joly emphasized the difference between Stelco’s planned job cuts and recent layoffs in the auto sector, stating that Cleveland-Cliffs is bound by legally enforceable employment commitments made during the acquisition.
In conclusion, Joly reiterated the importance of fulfilling these obligations, emphasizing that they are not negotiable.
