Prime Minister Mark Carney said it would be a mistake for Cleveland-Cliffs to fail to honour the commitments it made when it bought Stelco.
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Prime Minister Mark Carney said Thursday that it would be a mistake for Cleveland-Cliffs Inc. to fail to honour the commitments it made when it bought Stelco.
Speaking at a news conference in Montreal, Carney declined to comment on the possibility of forcing the U.S. steelmaker to sell Stelco, saying a legal process is underway.
Carney’s comments came as Industry Minister Mélanie Joly stepped up pressure on Stelco to recall workers who were laid off.
In a new letter, Joly rejected the steelmaker’s latest compliance report as “far from satisfactory” and demanded the immediate recall of laid-off workers before she would sit down with Cleveland-Cliffs chief executive Lourenco Goncalves.
Cleveland-Cliffs, which is Ohio-based, acquired Stelco in 2024 and agreed to legally binding commitments under the Investment Canada Act, including maintaining employment levels for unionized workers and most salaried employees for five years.
Stelco announced on Sept. 28 that up to 500 workers could be affected by plans to idle finishing operations at Hamilton Works and reduce operations at its Lake Erie Works in Nanticoke, Ont.
Cleveland-Cliffs says there are currently 175 workers laid off.
The company cited U.S. tariffs, weak demand for Canadian steel and competition from imported steel products as reasons for the layoffs.
Goncalves said Wednesday he hopes to recall all 175 workers before Christmas if a plan to boost sales of Canadian-made steel to domestic customers succeeds.
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