Minister giving Stelco owner 15 days to reverse layoffs before turning to the courts
Canadian Minister Mélanie Joly has issued a 15-day ultimatum to Cleveland-Cliffs, threatening legal action if the company proceeds with planned layoffs at Stelco. The government argues the layoffs violate commitments made under the Investment Canada Act, while the company maintains the cuts are necessary for survival.
Why it matters
This highlights the tension between foreign corporate ownership and national labor protections, setting a precedent for how governments enforce investment agreements.
In a demand letter sent to Ohio-based Cleveland-Cliffs on Thursday, Joly says the company is violating its commitments under the Investment Canada Act.
"In the event Cliffs fails to comply with this demand, the minister may, pursuant to Section 40 of the act, make an application to a superior court," the letter, obtained by Radio-Canada, reads.
Joly indicates that if the government proceeds with legal action, it would be asking the courts to issue monetary penalties against Cleveland-Cliffs and potentially direct the company to divest from Stelco.
"I remain prepared to sit down with Cleveland-Cliffs to find a solution. But our bottom line is clear: protect Canadian jobs, defend our steel industry and ensure that commitments made to Canada are respected," Joly said in a statement.
Potential buyers already interested in Stelco, minister says
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