Canada's Prime Minister warns Cleveland-Cliffs of breach over Stelco layoffs
Prime Minister Mark Carney warned Cleveland-Cliffs Inc. on 29 October that the company risked breaching its Investment Canada Act obligations after laying off up to 500 Stelco workers, and said the federal government was preparing legal action. The dispute traces back to Cleveland-Cliffs' claim on 27 October that it had fulfilled the Act's conditions and had asked Industry Minister Mélanie Joly for a meeting. Federal trade data later showed that more than half of Canada’s galvanized steel imports came from the United States, challenging the company's argument that cheap foreign steel caused the layoffs.
CEO Lourenço Gonçalves subsequently said the firm might sell the Hamilton plant within a year and announced a plan to rehire 175 laid-off workers before Christmas if a sales-boost strategy succeeded. Minister Joly said she had sought legal advice after the CEO said the acquisition was meant to protect U. S. operations and later said she would meet the company only after it presented a detailed rehiring plan.
