Cleveland-Cliffs CEO says he aims to rehire 175 Stelco workers by Christmas if sales plan succeeds

Cleveland-Cliffs Inc. chief executive Lourenço Gonçalves told The Canadian Press on Wednesday that the firm hopes to recall the 175 workers laid off at Stelco’s Hamilton plant before Christmas, provided a plan to increase sales of Canadian-made steel takes effect. He said the company is now relying on higher domestic purchases rather than tighter import restrictions to restore jobs at its Ontario facilities.

“It will depend on Canadian customers buying Canadian steel, made by Stelco. If our plan works, my intention is to call back all the 175 workers before Christmas,” Gonçalves said.

The United Steelworkers Local 1005 president Ron Wells confirmed the 175 layoffs at Hamilton and noted that no cuts have yet occurred at the Lake Erie Works in Nanticoke. Wells accused Cleveland-Cliffs of using the layoffs to pressure the federal government for stricter foreign-steel import rules.

“He just caused a lot of pain and grief for 175 people. Obviously, we’re against using our members as pawns,” Wells said.

Cleveland-Cliffs cited U.S. tariffs, weak demand and competition from imported steel as reasons for the reductions. The company acquired Stelco in 2024 under conditions that required it to maintain minimum employment levels. Gonçalves said the expected growth in domestic sales of cold-rolled and galvanized steel has not materialized, and that Ottawa’s reluctance to further restrict imports forces the firm to depend on its own efforts and Canadian customers.

He also stated that Stelco will not be put up for sale for at least a year.

“I will not talk to any buyers, real or imaginary, now or within the next calendar year… after we demonstrate one year of higher production numbers, and also have brought all the 175 workers back to their jobs, I will be glad to sell the company, and only if I decide to do so by then,” Gonçalves said.

Industry Minister Mélanie Joly warned that failure to meet the binding commitments could force a sale of Stelco, and she has publicly discussed potential buyers. Gonçalves criticized the minister’s comments as discouraging foreign investment.

“If I knew — or even suspected — that I would be subjected to this type of treatment when I made a business decision within the boundaries of undertakings that I am in full compliance with, I certainly would not have invested in Canada,” he said.

Joly has indicated that Cleveland-Cliffs must present a concrete plan and timeline for rehiring workers before she will consider meeting with the CEO. The outcome of the proposed sales-boost strategy remains uncertain.