The CEO of the American firm that owns Stelco, a steelmaker in Hamilton, is ready to challenge the Canadian government in court over Stelco’s decision to lay off numerous employees. Cleveland-Cliffs CEO Lourenco Goncalves, speaking on CBC’s program “Rosemary Barton Live,” contested the government’s claim that the company is breaching employment commitments under the Investment Canada Act.
According to Industry Minister Mélanie Joly, Cleveland-Cliffs’ acquisition of Stelco in 2024 included promises to maintain the same number of unionized and non-unionized employees until 2029. Goncalves stated that there is no contractual obligation to maintain employment levels daily for five years and that he would not have agreed to such terms imposed by the Canadian government.
Stelco’s stance is that the layoffs are temporary until a trade deal is reached between Canada and the U.S., with the intention to reinstate the jobs. Goncalves also expressed openness to selling the company and endorsed U.S. tariffs on Canadian steel, despite Stelco attributing its financial challenges to tariffs.
Minister Joly issued an ultimatum to Cleveland-Cliffs, demanding a plan to safeguard up to 500 jobs at the Hamilton plant or face legal consequences. Prime Minister Mark Carney vowed to utilize all available measures against the company. Stelco defended its decision to proceed with layoffs, refuting the government’s claim of breaching commitments.
The company attributed its circumstances to external factors, particularly the impact of U.S. President Donald Trump’s steel tariffs. Despite this, Goncalves voiced support for steel tariffs against Canada, emphasizing their positive impact on the American steel industry.
Regarding a potential sale of the company, Goncalves indicated willingness for the right offer while expressing confidence in Stelco’s future in Canada. He mentioned regret over the trade tensions between Canada and the U.S., emphasizing that he would not have acquired Stelco under current circumstances.
Layoffs are already in progress, with Ron Wells from the United Steelworkers Local 1005 anticipating 300 to 350 job cuts in Hamilton and additional layoffs at Stelco’s facility in Nanticoke. Wells criticized Goncalves for allegedly trying to showcase the success of Trump’s tariffs before the U.S. midterm elections, urging the federal government to enforce accountability.
