Muhammad Amanullah
Date: October 12, 2026
The True Post (Web News) — The chief executive of Cleveland-Cliffs, the US-based company that owns Hamilton steelmaker Stelco, says he is prepared to fight the Canadian government in court over planned layoffs affecting hundreds of workers. Lourenco Goncalves has also indicated that he would consider selling the company if he received an appropriate offer.
The dispute centres on Cleveland-Cliffs’ employment commitments when it acquired Stelco in 2024. The federal government maintains that the company must honour its promises to protect jobs, while Goncalves argues that the government is interpreting the agreement incorrectly.
The company has announced plans to lay off up to 500 workers across its Hamilton, Ontario, operations and Lake Erie Works in Nanticoke, citing market pressures, weak demand and the impact of US tariffs on Canadian steel.
Canadian Government Threatens Legal Action
Canadian Industry Minister Mélanie Joly has warned Cleveland-Cliffs that it must present a credible plan to address the planned job cuts or face possible legal action.
Under the conditions attached to the 2024 acquisition approval through the Investment Canada Act, Cleveland-Cliffs committed to maintaining at least the number of unionized employees employed when the transaction was announced, along with the vast majority of non-unionized workers.
The commitments were part of the federal government’s approval of the acquisition and were intended to protect Canadian employment and the country’s economic interests.
Joly has insisted that changing business conditions do not automatically release the company from those obligations. Prime Minister Mark Carney has also indicated that the federal government is prepared to use the legal options available to enforce the commitments.
Cleveland-Cliffs, however, disputes the government’s interpretation of the employment requirements.
Speaking on CBC’s Rosemary Barton Live on Sunday, Goncalves argued that the agreement did not require the company to maintain a fixed number of employees every single day throughout the five-year commitment period.
He suggested that if such a strict daily employment requirement had been imposed, he would not have agreed to purchase Stelco.
Company Says Layoffs Are Temporary
Goncalves has repeatedly described the planned layoffs as temporary, arguing that workers could return once Canada and the United States reach a trade agreement that improves market conditions for Canadian steel.
The company says the difficulties facing Stelco are linked to factors beyond its direct control, including trade tensions, competition from imported steel and US tariffs on Canadian steel.
Stelco has said that market uncertainty and prolonged pressure on its business have forced it to reduce finishing operations at its Hamilton facility, affecting cold-rolled and coated steel production.
Goncalves has maintained that the company could recall affected workers if a trade agreement allows it to resume production and sell more steel.
However, the federal government has rejected the suggestion that tariffs and market pressures are sufficient grounds to disregard the employment commitments made during the acquisition.
CEO Supports US Steel Tariffs
The dispute has attracted additional attention because Goncalves supports the US tariff policy that has contributed to the challenges facing Stelco’s Canadian operations.
He has defended tariffs imposed under Section 232 of US trade law, arguing that they have helped strengthen the American steel industry.
Goncalves has said he supports tariffs against countries that sell steel in the US market at what he considers unfair prices. He has also described the US tariff policy as an important measure for protecting domestic steel producers.
His position has drawn criticism in Canada because Cleveland-Cliffs is citing trade pressures as one of the reasons behind its planned job cuts at Stelco while its chief executive supports US measures affecting Canadian steel.
United Steelworkers Local 1005 president Ron Wells has questioned the circumstances surrounding the layoffs, suggesting that workers are caught in the broader trade dispute between the two countries.
The disagreement has highlighted the challenges facing steelmakers operating across the Canada-US border as both governments consider measures to protect their domestic industries.
Cleveland-Cliffs CEO Open to Selling Stelco
Goncalves has also said he would consider selling Stelco if an appropriate offer were made.
Although he remains open to a sale, he has maintained that Stelco can continue operating as a responsible business in Canada.
He has previously expressed regret over the circumstances surrounding the acquisition, saying he might not have purchased the company had he anticipated the deterioration in Canada-US trade relations.
The possibility of a sale adds another dimension to the uncertainty surrounding Stelco’s future. Any potential transaction would raise questions about the company’s operations, its employment commitments and the future of steel production in Ontario.
For now, Cleveland-Cliffs remains committed to its announced operational changes while the Canadian government seeks assurances that the company will honour the conditions attached to its acquisition.
Layoff Notices Raise Concerns Among Workers
The planned job cuts have created anxiety among Stelco employees and their families.
Workers have begun receiving individual layoff notices, with the first cuts scheduled to take effect in October. According to United Steelworkers Local 1005 president Ron Wells, approximately 330 workers at the Hamilton facility could be affected over a period of about three weeks.
Additional job losses are expected among workers at Lake Erie Works in Nanticoke, where operations are also being reduced.
Jordan Williams, a Stelco employee who received a layoff notice, has called on the company’s leadership to provide written answers about the future of production and the support available to affected workers.
He has urged the company to explain how it intends to protect employees and their families and whether laid-off workers will be able to return to their jobs.
The consequences could extend beyond the steel plants themselves. Local businesses, suppliers and communities in Hamilton and surrounding areas depend on industrial employment and the economic activity generated by the steel sector.
Union representatives have also expressed concern about the financial pressure that job losses could place on families who rely on well-paid industrial work.
Legal Dispute Could Shape Stelco’s Future
The conflict between Cleveland-Cliffs and the Canadian government raises important questions about foreign investment, employment protection and the enforceability of commitments made during major corporate acquisitions.
Ottawa argues that the employment conditions attached to the 2024 transaction remain binding. Cleveland-Cliffs maintains that the planned layoffs do not violate the agreement and that the government is interpreting its obligations too strictly.
The outcome may depend on the precise wording of the acquisition commitments and how they are interpreted under Canadian law.
For Stelco workers, the immediate concern remains whether the planned layoffs will proceed and whether affected employees will eventually be recalled.
For Hamilton and the wider Ontario steel industry, the dispute could have consequences for production, industrial employment and future investment decisions.
Until the disagreement is resolved, uncertainty is likely to remain over Stelco’s workforce, its operating plans and the relationship between the company’s American owner and the Canadian government.
