Stelco says it is proceeding with Ontario layoffs after Ottawa issues ultimatum
Stelco Inc. is proceeding with hundreds of layoffs in Ontario despite an ultimatum from the Canadian federal government. The company argues that the layoffs do not violate its Investment Canada Act commitments, citing trade-related economic pressures.
Why it matters
This dispute highlights the tension between foreign-owned corporations and national employment guarantees during periods of international trade instability.
The Stelco Hamilton Works steel mill, owned by Cleveland-Cliffs, on Sept. 29. Carlos Osorio/Reuters
Stelco Inc. has informed Ottawa it is not in violation of its Investment Canada Act job commitments, and it is proceeding as planned with hundreds of layoffs in Canada.
Stelco, which is owned by U.S. steelmaker Cleveland-Cliffs Inc., said on Sept. 28 that it was laying off up to 500 workers in Hamilton and Nanticoke, Ont., saying it couldn’t compete in galvanized steel as a result of the trade war.
When the federal government approved Cliffs’ $3.4-billion acquisition of Stelco in 2024, it imposed legally binding conditions, including maintaining at least the same number of unionized employees in Canada for five years, as well as the vast majority of non-unionized workers.
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