Hamilton’s Stelco plant plans to lay off hundreds of workers as Canada’s steel industry continues to face tariff pressures. Adrian Ghobrial has more. <\/p>\n
A legal expert says job promises made by Stelco Holdings Inc.\u2019s American parent company when it acquired the beleaguered steel maker are legally binding \u2014 but whether this week\u2019s layoffs violate them depends on terms that have not been made public.<\/p>\n
Cleveland-Cliffs\u2019 takeover of Stelco was approved in 2024 contingent on a number of mandatory, five-year commitments, including maintaining at least the same number of unionized workers and most non-unionized employees as when the deal was announced.<\/p>\n
Business lawyer Nassira El Hadri says the company\u2019s plan to cut up to 500 workers at its Hamilton and Lake Erie facilities could prompt legal action.<\/p>\n
She says if Cleveland-Cliffs failed to meet its 2024 commitments, the industry minister could first issue a formal demand requiring the company to fix or justify the non-compliance.<\/p>\n
If that does not resolve the issue, El Hadri says Ottawa could go to superior court where a judge could order the company to comply, impose penalties or even order a sale of the business.<\/p>\n
She says the federal government\u2019s options and how successful any enforcement action might be depend on the exact wording of the undertakings Cleveland-Cliffs agreed to.<\/p>\n
\u201cThe actual agreement that the federal government made with Cleveland-Cliffs is not public, it\u2019s confidential and privileged,\u201d said El Hadri, founder of Hadri Law in Toronto. <\/p>\n
\u201cWe only have a summary of those undertakings on the government\u2019s website,\u201d she said. \u201cWe don\u2019t know exactly what it was committed to.\u201d<\/p>\n
—<\/p>\n
Brett Bundale, The Canadian Press<\/p>\n
This report by The Canadian Press was first published Sept. 30, 2026.<\/p>\n
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