Joly demands Stelco owner comply with job commitments in new letter, gives 15-day deadline to respond
Canadian Industry Minister Mélanie Joly has issued a 15-day ultimatum to Cleveland-Cliffs, demanding compliance with employment commitments following significant layoffs at Stelco. The government alleges the U.S.-based owner violated its Investment Canada Act undertakings regarding unionized and salaried workforce levels.
Why it matters
This highlights rising tensions over foreign ownership and the enforcement of labor protections in the Canadian steel industry.
Stelco's steel mill in Hamilton. Industry Minister Mélanie Joly sent a new letter to the company's U.S. owner, Cleveland-Cliffs, on Thursday. Carlos Osorio/Reuters
Industry Minister Mélanie Joly has sent Stelco Inc. a new letter demanding it comply with its Investment Canada Act undertakings after it announced hundreds of job cuts last month, and criticized Cleveland-Cliffs Inc. CLF-N boss Lourenco Goncalves for repeatedly backing U.S. President Donald Trump’s tariffs on Canadian steelmakers.
The letter sent to Stelco president Paul Simon on Thursday stated that the U.S. steelmaker has 15 days to respond or possibly face legal action by Ottawa that would seek to enforce the terms of the agreement.
Ms. Joly detailed in the letter multiple examples of the company allegedly violating its legally binding commitments and demanding it comply.
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