Stelco has reportedly pushed again on accusations it breached its settlement with the federal authorities, saying they’re “false,” and it “stands prepared to guard its pursuits.”
This comes as Stelco begins shedding a whole lot of staff, and faces threats of authorized motion from the federal authorities if these jobs will not be preserved.
The Ontario-based metal producer despatched a letter responding to Business Minister Melanie Joly after she despatched a letter to Cleveland-Cliffs, the U.S.-based firm which acquired Stelco in 2024. She additionally gave the corporate 5 days to reply.
Cleveland-Cliffs informed World Information it despatched a letter in response to Joly’s workplace on Oct. 9, though the response was not initially shared publicly.
Stelco’s letter to Joly, which was written by the corporate’s president and common counsel, Paul Simon, was shared with World Information Monday through a supply who requested to not be named.
“Via our common contact, the federal government has had important advance discover of the affect these unprecedented market situations have had on our enterprise, and in more moderen communications courting again to July 2026,” the letter mentioned.
“Our early September conferences with a number of senior authorities officers, together with representatives out of your workplace, led Stelco to imagine that the federal government understood the market realities confronting Stelco’s Hamilton Works ending strains.”
Stelco, like Algoma and different Canadian metal producers have been hit onerous by U.S. tariffs of fifty per cent on Canadian metal imports, which led to a steep decline in gross sales to U.S. clients. The corporate mentioned these market situations have pressured it to layoff as much as 500 staff.
Associated Movies
Joly responded on social media on Oct. 10 after reportedly receiving the letter from Stelco.
“The Authorities of Canada continues to count on Stelco to satisfy its legally binding commitments to workers. These commitments have been agreed upon as undertakings underneath the Funding Canada Act and don’t stop to use due to altering enterprise technique or market situations,” mentioned Joly within the assertion.
Get each day Nationwide information
Get each day Canada information delivered to your inbox so you will by no means miss the day’s prime tales.
“As our authorized crew evaluations the Stelco letter, all choices are on the desk.”
Canada gave U.S.-based Cleveland-Cliffs the go-ahead to buy Stelco again in 2024 underneath the Funding Canada Act (ICA), which regulates overseas takeovers.
Talking within the letter to Stelco final week, Joly mentioned Canada’s approval of the deal was contingent on the brand new proprietor sustaining the variety of union jobs and nearly all of non-union positions.
These situations don’t expire simply because “enterprise technique or market situations have modified,” she added.
“That is notably related right here, the place Cleveland-Cliffs has cited commerce disruptions as affecting its operations at Hamilton Works, however its chief govt officer’s public help for Part 232 tariff measures,” Joly mentioned.
Stelco pushed again on Joly’s accusations in its letter, and mentioned it “stays in compliance” with the undertakings within the settlement from 2024.
“Stelco submitted its annual report confirming its compliance with the employment undertakings in November 2025. That report highlighted that Stelco was dealing with important challenges because of the unexpected penalties stemming from unprecedented U.S. tariffs and Canada’s failure to advance an efficient ‘Fortress North America’ commerce regime,” the letter mentioned.
“Your illustration that Stelco’s deliberate layoffs trigger it to breach its undertakings is fake because the undertakings don’t stipulate a dedication to keep away from layoffs.”
When the layoffs have been first introduced final month, Prime Minister Mark Carney mentioned the corporate “betrayed” Canadian staff and insisted “there’s cash on the desk” to maintain workers on the job.
In an unique interview with World Information from Sept. 30, Lourenco Goncalves, the chairman and CEO of Cleveland-Cliffs, mentioned the corporate’s resolution was purely market-driven and that monetary incentives couldn’t repair the elemental points.
“I’m not shutting down, I’m not dismantling,” Goncalves mentioned throughout a 10-minute cellphone name. “There’s no market in Canada for the quantity of galvanized metal we produce in Canada. We have to export… to america.”
“Till we reestablish that, there’s nothing we will do, nothing.”
The union representing the roughly 500 metal staff dealing with potential layoffs, USW Native 1005, mentioned it was not consulted nor did it have a chance to evaluation these undertakings within the ICA.
“We have been assured by each Cleveland Cliff’s and the Federal Authorities that bargaining unit employment ranges would stay the identical for five years. In different phrases no layoffs,” mentioned the union’s president Ron Wells in a press release.
“Though we weren’t privileged to the signed settlement between Cliff’s and the Authorities, the response reeks of desperation as the unique rationalization of Stelco being victims of Trump’s metal tariffs wasn’t flying.”
Stelco, within the letter to Joly, denied wrongdoing, and primarily based on the data introduced to the federal authorities all through the commerce battle, and the federal government’s personal pointers, the corporate mentioned:
“In a scenario equivalent to this, Stelco shouldn’t be liable for any non-compliance with its undertakings. Stelco stands prepared to guard its pursuits per the Funding Canada Act and its pointers.”
World Information despatched requests for remark to Stelco and Cleveland-Cliffs, however neither responded by publication.
– With recordsdata from World Information’ Colin D’Mello and The Canadian Press
© 2026 World Information, a division of Corus Leisure Inc.