OTTAWA – Cleveland-Cliffs Inc. CEO Lourenco Goncalves stands by its job compliance, regardless of layoffs at steelmaker Stelco, and requested a gathering with Trade Minister Mélanie Joly.
“We made severe commitments to Canada after we acquired Stelco, and now we have honoured them,” stated Goncalves, in a press launch. “Stelco is in full compliance with all undertakings, and in a number of essential areas now we have gone past what we dedicated to do.”
Cliffs despatched a letter to Joly on Monday night, in response to a letter she despatched on Oct. 22. Joly has threatened authorized motion towards Cliffs if it doesn’t reverse the five hundred layoffs introduced at Stelco’s Hamilton plant and Lake Erie Works in Nanticoke, Ont. or present proof that justifies why it stays in compliance.
That Oct. 22 letter outlined that Joly had decided that Cliffs was in contravention of its employment undertakings that it signed when its acquisition of Stelco was authorized by the Authorities of Canada beneath the Funding in Canada Act in 2024.
These undertakings included making certain common combination annual employment of unionized staff remained no decrease than 1,766 and salaried staff stay no decrease than 603.
“For the present reporting interval, Stelco expects common annual employment of at the least 1,879 bargaining unit full-time equal staff, 113 above the required stage of 1,766,” the Cliffs press launch stated.
“Salaried employment is anticipated to common at the least 627 full-time equal staff, in contrast with the required stage of 603,” it learn.
Joly informed reporters Tuesday she want to see a plan to rehire employees at Stelco earlier than a gathering can occur.
“My message to the CEO of Cleveland Cliffs is obvious,” she stated on her method into a cupboard assembly in Ottawa.
“Initially, what I need is a plan to deliver again the roles, and I desire a timeline, and naturally I’m all the time prepared to sit down down, however that’s the primary situation,” she added.
Joly stated the federal government’s place stays that Cliffs has violated the job dedication undertakings. She additionally stated Cliffs has failed one other enterprise in advocating for tariff-free entry for Canadian metal to the U.S.
Joly and Prime Minister Mark Carney have each famous that Goncalves is a supporter of U.S. President Donald Trump’s Part 232 tariffs.
In its letter to Joly, Cliffs identified the Canadian authorities’s commerce shift with regard to Chinese language electrical autos and funding is a supply of irony, given it was one of many undertakings Cliffs signed again in 2024.
“Stelco additionally confirmed compliance with enterprise 13, which covers advocacy for commerce coverage,” the press launch stated. “Mockingly, one aspect of that enterprise calls on Cleveland-Cliffs to confront Chinese language electrical car subsidies and inbound Chinese language funding, an goal that has since been sophisticated by the Authorities of Canada’s personal change in coverage towards Chinese language EVs.”
Cliffs stated it plans to replace its compliance report on Oct. 31.
“For galvanized merchandise, the imports of non-automotive galvanized metal that proceed to flood the Canadian market stay problematic,” stated Goncalves. “We wish to discover a resolution for Hamilton and its employees as quickly as doable and consider widespread sense commerce coverage will make this a actuality.”
The business minister didn’t rule out taking Cliffs to court docket on Tuesday. In her Oct. 22 letter, Joly outlined doable outcomes of court docket motion together with Cliffs’ divestiture from Stelco, a directive to adjust to the undertakings, a penalty of $10,000 every day Cliffs is just not in compliance or suspending Cliffs’ voting rights within the firm.
Final week, she informed reporters that there have an interest patrons in Stelco’s Canadian belongings.
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