Canada Pushes Cleveland-Cliffs on Jobs Despite Steelmaker Saying It Complies With Commitments

By Robb M. Stewart

OTTAWA--Canada's government isn't backing down on its fight to protect jobs at Cleveland-Cliffs' steel operations in the country despite the company protesting it has complied with commitments made when it bought the assets.

Industry Minister Melanie Joly on Tuesday reiterated the government's stance that Cliffs by laying off workers in Ontario and supporting President Trump's tariffs on steel products breached undertakings made to secure approval for its roughly $2.4 billion acquisition of Stelco in 2024.

"My message to the CEO of Cleveland-Cliffs is clear. First and foremost, what I want is a plan to bring back the jobs and I want a timeline," Joly told reporters.

Joly said she was willing to sit down with Cliffs Chief Executive Lourenco Goncalves, but the plan was the first condition that had to be met.

The federal government last week gave Cliffs 15 days to abandon layoffs that are already underway or risk hefty fines and even a possible forced sale of Stelco. Joly said the government's position was clear and it had a strong case.

"Not only have they not kept the job numbers, but at the same time they had a clear commitment to make sure that there would be advocating in favor of tariff-free access of Canadian steel to the U.S., and they have done completely the contrary," Joly said. "We think that there is a double violation of undertakings."

The comments come after Cliffs a day earlier sent a letter to Joly saying the steel maker had performed an exhaustive review that confirmed it was in full compliance with 34 undertakings made to Ottawa, including commitments on job numbers and advocacy for trade policy.

The company said that in several important areas the performance of Stelco exceeded its commitments. Average annual employment is expected to be at least 1,879 full-time unionized employees, 113 above the required level, and salaried employment is expected to average at least 627 full-time positions compared with a required 603, Cliffs said.

On trade policy, Cliffs said ironically one element of its undertaking called on the company to confront Chinese electric vehicle subsidies and inbound Chinese investment, "an objective that has since been complicated by the government of Canada's own change in policy toward Chinese EVs."

Cliffs has requested a meeting between Goncalves and Joly to discuss a path toward resuming full employment for 175 workers in Hamilton, Ontario, who have been temporarily laid off but said the lawmaker hadn't yet responded.

"The facts are clear. We made serious commitments to Canada when we acquired Stelco, and we have honored them," Goncalves said.

Cliffs has pegged the need for a temporary reduction in headcount on the pressure the steel industry faces from tariffs and imports of non-automotive galvanized steel that it says continue to flood the Canadian market.

"We want to find a solution for Hamilton and its workers as soon as possible and believe common sense trade policy will make this a reality," Goncalves said.

Goncalves has been a strong proponent of the Trump administration's Section 232 tariffs, but the CEO has said that the current trade environment between the neighboring countries is out of Cliffs hands. "We are not part of the negotiation between the U.S. and Canada. We can influence, we can express our opinion, but we are not at that table," he told The Wall Street Journal earlier this month.

Cliffs has said it could lay off as many as 500 workers as it idles cold-rolled and coated steel operations in Hamilton and concentrates on hot-roll products.

Under section 40 of the Investment Canada Act, the government's options in court include seeking financial penalties, forcing the company to abide by commitments and a forced divestiture of the Canadian assets.

Joly last week said a forced sale was on the table and the government was aware of some potential buyers interested in purchasing the Canadian assets of Stelco.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 27, 2026 11:17 ET (15:17 GMT)