Joly gives Stelco's U.S. owner 15 days to respond to letter on job commitments

Industry Minister Mélanie Joly has sent a new letter to Stelco president Paul Simon demanding that the company comply with commitments made under the Investment Canada Act, the federal law that governs foreign investment in Canada. According to the Globe and Mail, Cleveland-Cliffs, the American steel company that owns Stelco, has 15 days to respond or possibly face legal action.

Cleveland-Cliffs bought Stelco in 2024. The deal came with a legally binding commitment to keep at least the same number of unionized employees in Canada for five years. The undertaking Joly cited sets two minimums. The average annual unionized workforce must be no smaller than 1,766, and the salaried workforce must be no smaller than 603.

On Sept. 28, Stelco announced layoffs of up to 500 workers in Hamilton and Nanticoke, Ontario. Cleveland-Cliffs said it was forced to issue the layoffs in Canada in large part because of the trade war and 50-per-cent tariffs.

Prime Minister Mark Carney said the company had "betrayed" its Canadian workforce.

When the company bought Stelco, it also promised to be a strong advocate for policies that would benefit both the U.S. and Canadian steel industries. That included defending Canada's exemption from U.S. steel tariffs.

In an October 2025 interview with Politico, Cleveland-Cliffs CEO Lourenco Goncalves said he was "very happy" with the 50-per-cent U.S. tariffs on steel. He also said: "I have my fingerprints on that 50 percent. In other words, I influenced that."

Joly's letter sets out the deadline and the possible consequences. CBC News reported that she gave the American parent 15 days to reverse the layoffs. Global News reported that Joly warned the owner it could be forced to sell its Canadian operations unless it honours its job commitments.