Canada’s Industry Minister Melanie Joly has given US-based Cleveland-Cliffs 15 days to meet its job-retention commitments at steelmaker Stelco. The company could face legal action if it fails to do so.
In an 11-page letter reported by media, Joly said Cleveland-Cliffs had breached six commitments made when it acquired Stelco. One required the company to maintain an average of at least 1,766 Canadian employees a year, matching average full-time equivalent employment in the 12 months ending June 30, 2024. Joly said the planned cuts would take staffing below that threshold.
Joly also cited a pledge to support policies benefiting both the US and Canadian steel industries. But Cleveland-Cliffs CEO Lourenco Goncalves backed Section 232 tariffs against Canada, and the company was the first signatory to a January 28 industry memo urging President Donald Trump to impose steel tariffs. Joly said the possibility of such tariffs was foreseeable in October 2024, when the Stelco acquisition was completed.
Cleveland-Cliffs says tariffs have made the mill financially difficult to operate. However, in its latest quarterly announcement, Goncalves called the third quarter of 2026 Stelco’s strongest since the acquisition and said the plant had become a positive EBITDA contributor. He also said “total production tonnage at Stelco will be maintained” and approximately 2,000 Canadian jobs would be preserved.
Joly’s first letter, dated October 5, gave Stelco five business days to submit a plan for meeting its employment commitments. Stelco President Paul Simon rejected the allegation of a breach on October 9, saying the company remained in compliance. The first layoffs took effect on October 11.
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