US-based Cleveland-Cliffs said its subsidiary Stelco is meeting all 34 commitments it made when the Canadian steelmaker was acquired. The company sent an updated compliance report to Canada’s Industry Minister, Mélanie Joly, on October 26.
Following an “exhaustive review” with legal counsel, Stelco found that it not only complies with all obligations under the Investment Canada Act but exceeds several, including those related to employment. For the current reporting period, the company expects an average of at least 1,879 full-time-equivalent employees covered by collective bargaining agreements, above the required 1,766. Salaried employment is expected to average at least 627 full-time-equivalent employees, compared with a requirement of 603.
Cleveland-Cliffs also said Stelco complies with undertaking 13, which concerns trade policy advocacy. It includes opposing Chinese electric-vehicle subsidies and Chinese investment in Canada. The company said this commitment has been complicated by a shift in the Canadian government’s policy on Chinese EVs.
On October 23, Stelco asked Joly to meet with Cleveland-Cliffs CEO Lourenco Goncalves to discuss bringing back 175 workers temporarily laid off at the Hamilton facility. The minister had not responded at the time of the company’s statement. The following day, media reports said Joly was willing to meet, but only after the company presented “a plan to bring the jobs back.”
“We want the same things as Minister Joly and Ontario Premier Doug Ford: a strong Stelco, good jobs in Hamilton and a Canadian steel industry that can compete and succeed,” Goncalves said. He added that the company was ready to discuss a solution.
Cleveland-Cliffs’ CEO also voiced support for the US Section 232 policy and said a solution bringing North America together would serve the interests of both the United States and Canada. Stelco is to update its compliance report after the current reporting period ends on October 31.
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