Cleveland-Cliffs CEO says he aims to rehire 175 laid-off Stelco workers before Christmas
Cleveland-Cliffs chief Lourenço Gonçalves said a plan to boost Canadian steel sales could allow the company to bring back 175 workers laid off at Stelco’s Hamilton plant before the holiday season, while officials demand a concrete rehiring timeline.
Cleveland-Cliffs Inc. chief executive Lourenço Gonçalves said on Wednesday that the company hopes to recall the 175 workers laid off at Stelco’s Hamilton Works before Christmas if a strategy to increase sales to Canadian customers succeeds. He told The Canadian Press that the plan relies on “Canadian customers buying Canadian steel, made by Stelco,” and that a successful outcome would lead to “calling back all the 175 workers before Christmas.”
The layoffs, announced in a September internal letter, were attributed to U.S. tariffs, weak demand and competition from imported steel. United Steelworkers Local 1005 president Ron Wells confirmed the 175-worker figure and said no layoffs have occurred at Stelco’s Lake Erie Works.
Industry Minister Mélanie Joly responded to Gonçalves’ proposal by stating that the government needs a detailed plan and timeline before she will meet with the CEO, adding that “the clock is ticking.” She warned that Cleveland-Cliffs could face legal action if it fails to meet its commitments under the Investment Canada Act.
Gonçalves noted that the company’s attempt to sell cold-rolled and galvanized steel in the domestic market has not yet materialized and that, with Ottawa unwilling to tighten import restrictions, Stelco must depend on its own efforts and Canadian buyers to restore production and jobs. He also said the firm will not be put up for sale for at least a year and that any future sale would be his decision.
The dispute has drawn criticism from several Liberal MPs, who accuse Cleveland-Cliffs of using the acquisition to protect its U.S. operations and of pressuring the government on import policy. Ontario Economic Development Minister Vic Fedeli said the company has been “disingenuous” and has supported U.S. tariffs on Canadian steel.
Both the minister and the company have indicated they are consulting legal counsel over remarks made by Gonçalves regarding the acquisition and its impact on Canadian steelworkers.