Cliffs is playing a classic game of chicken with Ottawa
Cleveland-Cliffs is facing pressure from the Canadian government over planned job cuts at its Stelco subsidiary. Ottawa has threatened legal action and potential divestiture to protect domestic steel production, which is considered a matter of national security.
Why it matters
The dispute highlights tensions between international corporate interests and national industrial policy, particularly regarding critical infrastructure and labor.
Smoke exits the Stelco Hamilton Works steel mill. Carlos Osorio/Reuters
Cleveland-Cliffs Inc., the American owner of Stelco Inc., is locked in a blustery battle of wills with Ottawa over Canadian job cuts.
The Ohio-based steelmaker, which is waging Washington’s trade war by proxy, is goading Prime Minister Mark Carney’s government to take it to court for violating labour commitments tied to its takeover of Stelco two years ago.
Canadian officials, too, are refusing to back down, floating possible legal action that could result in financial penalties and the forced divestiture of Stelco. But in characteristic Canadian fashion, they have also consistently conveyed a willingness to resolve the conflict in conjunction with the company. You know, the old-fashioned way, by talking face to face.
Joly warns Stelco owner of forced divestment if Ontario layoffs go ahead
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