Industry Minister Mélanie Joly says the U.S. owner of Stelco must uphold job commitments or risk being forced to sell its Canadian assets.
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Industry Minister Mélanie Joly warned Friday that the U.S.-based owner of Stelco must protect the jobs commitments it made when it bought the Ontario steelmaker, or face a forced sale of its Canadian assets.
Speaking in a speech at the Canadian Club in Toronto, Joly said she raised the possibility that the federal government could take equity positions in strategic industries, but she did not explicitly say Ottawa was prepared to take an ownership stake in Stelco.
Joly singled out Stelco owner Cleveland-Cliffs, accusing the American company of supporting U.S. tariffs that she said are damaging its own Canadian operations.
The warning came after Stelco announced plans on Sept. 28 to lay off up to 500 workers across its Hamilton and Lake Erie facilities, citing the ongoing trade crisis, weak demand and continued import pressure.
Stelco said its Hamilton Works produces cold-rolled and galvanized steel, and it said it would indefinitely idle both operations. The federal minister’s comments were made in Toronto on Friday, following the Sept. 28 announcement about the layoffs.
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