Cleveland-Cliffs announced it will recall all 175 Stelco workers effective Dec. 1, after a dispute with Ottawa over binding commitments tied to the takeover.
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Cleveland-Cliffs announced in July 2024 that it would acquire Stelco for about $3.4 billion, including debt.
On Oct. 29, 2024, Ottawa approved the takeover under the Investment Canada Act, subject to binding five-year commitments. Those commitments included maintaining employment levels, keeping Stelco’s head office in Hamilton and supporting Canadian steel operations, according to the timeline.
Cleveland-Cliffs completed its acquisition on Nov. 1, 2024.
By July 2026, Stelco began warning federal officials about deteriorating market conditions and the potential impact on Hamilton operations, according to a later letter referenced in the timeline. In early September 2026, Stelco said it met with senior federal officials, including representatives from Industry Minister Mélanie Joly’s office, to discuss challenges facing its Hamilton finishing operations.
On Sept. 28, 2026, Stelco announced plans to idle finishing operations at Hamilton Works, potentially affecting up to 500 workers across its Hamilton and Lake Erie facilities in Nanticoke, Ont. The company blamed U.S. tariffs and challenging market conditions.
The dispute intensified the following day, with Prime Minister Mark Carney accusing Cleveland-Cliffs of betraying Canadian workers and saying federal money was available to help preserve jobs. On Sept. 30, Cleveland-Cliffs chief executive Lourenco Goncalves said the layoffs were driven by market conditions and that government financial assistance would not solve the company’s problems.
On Oct. 5, 2026, Joly sent Stelco president Paul Simon a letter expressing disappointment over the planned layoffs and demanding a plan to honour the company’s commitments within five business days or face potential legal action.
Stelco began issuing layoff notices on Oct. 7, 2026, and on Oct. 9 it responded to Joly, denying it had violated its commitments and arguing that the agreement does not prohibit layoffs. The first layoffs took effect at Hamilton Works on Oct. 11.
On Oct. 14, Joly said Ottawa remained willing to negotiate but warned it would use the full force of the law to protect jobs, including potentially seeking financial penalties or a forced sale. Later in the month, on Oct. 22, Joly issued a formal demand under Section 39 of the Investment Canada Act, accusing Cleveland-Cliffs of violating six binding commitments. Stelco was given 15 days to address the alleged breaches or justify its actions.
Stelco asked for a meeting between Joly and Goncalves on Oct. 23 to discuss a plan to reinstate laid-off workers. On Oct. 26, Cleveland-Cliffs said it was meeting all 34 commitments under the takeover agreement and expected to maintain required employment levels despite laying off 175 workers at Hamilton Works.
On Oct. 28, Goncalves said he hoped to recall all 175 workers before Christmas if a plan to increase Canadian steel sales succeeded, and he said Stelco was not for sale, at least for the next calendar year.
On Oct. 29, Joly rejected Stelco’s latest compliance report as far from satisfactory and demanded the immediate recall of laid-off workers before meeting Goncalves. The timeline also says Carney stated Cleveland-Cliffs must honour its commitments, but declined to comment on a possible forced sale.
Stelco’s current employment-compliance reporting period ended on Oct. 31, with Cleveland-Cliffs saying it would update its employment figures. On Nov. 6, Joly asked the Competition Bureau to examine Cleveland-Cliffs’ conduct and whether enforcement action under the Competition Act was warranted.
On Nov. 13, 2026, Cleveland-Cliffs announced plans to recall all 175 workers effective Dec. 1, with retroactive pay for lost wages. The company cited improved customer demand, while the union credited federal pressure for the reversal.
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