Prime Minister Carney warns Cleveland-Cliffs of breach over Stelco layoffs

Prime Minister Mark Carney told reporters in Ottawa that Cleveland-Cliffs would be making a “mistake” if it fails to honour the obligations it agreed to when acquiring Stelco in 2024. The acquisition agreement, summarized publicly, contains legally binding commitments to maintain employment levels at or above those recorded at the time of the deal until 2029.

Cleveland-Cliffs has begun laying off as many as 500 Canadian steelworkers, prompting Industry Minister Mélanie Joly to send a letter to Stelco president Paul Simon demanding a “concrete and credible plan for re-engagement with these workers.” Joly said the interim compliance report submitted by Stelco on Oct. 26 was “far from satisfactory” and reiterated her belief that the company is not complying with its undertakings under the Investment Canada Act.

When asked if the government regrets allowing the acquisition, Carney said the mistake would be the company’s failure to respect its commitments, and he declined to comment further pending ongoing legal proceedings.

Cleveland-Cliffs argues that external factors, such as U.S. tariffs on Canadian steel, should not be held against it. CEO Lourenço Gonçalves told the Canadian Press that laid-off workers could be recalled before the holidays if Canadian steel sales increase, stating, “If our plan works, my intention is to call back all the 175 workers before Christmas.”