{"id":933362,"date":"2026-10-15T01:16:15","date_gmt":"2026-10-15T01:16:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/933362\/"},"modified":"2026-10-15T01:16:15","modified_gmt":"2026-10-15T01:16:15","slug":"stelco-layoffs-canada-weighs-legal-options-joly-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/933362\/","title":{"rendered":"Stelco layoffs: Canada weighs legal options, Joly says"},"content":{"rendered":"

Heather Wright reports on the response by Labour Minister Melanie Joly after Stelco\u2019s American owner defended the decision to cut jobs at an Ontario plant. <\/p>\n

HAMILTON \u2013 More layoff notices have been handed out to unionized workers at Stelco\u2019s plant in Hamilton, Ont., as the company moves ahead with idling its cold mill and coating departments, despite threats from Ottawa to take the company to court if the layoffs go ahead.<\/p>\n

Industry Minister Melanie Joly said \u201ceverything is on the table,\u201d including a forced divestment of assets or financial penalties if it does not heed the federal government\u2019s warnings to stop the cuts. <\/p>\n

\u201cWe expect Stelco to follow the undertakings they\u2019ve committed to the government of Canada,\u201d Joly told reporters Wednesday. \u201cAnd right now a business decision, or even a change in market conditions, cannot be used to not follow the commitment.\u201d<\/p>\n

\"\"A Stelco flag flies beside a Canadian flag at the steel production facility in Hamilton, Ont., on Monday, February 10, 2025. THE CANADIAN PRESS\/Nick Iwanyshyn A Stelco flag flies beside a Canadian flag at the steel production facility in Hamilton, Ont., on Monday, February 10, 2025. THE CANADIAN PRESS\/Nick Iwanyshyn <\/p>\n

Last month, Cleveland-Cliffs, the U.S. company that owns Stelco, announced it was shutting down part of its Hamilton operation and cutting up to 500 jobs. The federal government says the move breaks commitments Cleveland-Cliffs made under the Investment Canada Act when it bought Stelco in 2024, including a pledge to protect jobs.<\/p>\n

The company maintains it has no choice, citing low steel prices and U.S. President Donald Trump\u2019s tariffs. Ottawa rejected that argument, noting that the company\u2019s own CEO has publicly supported the tariffs. <\/p>\n

\"\"Minister of Industry Melanie Joly rises during Question Period in the House of Commons on Parliament Hill in Ottawa on Monday, Oct. 5, 2026. THE CANADIAN PRESS\/Justin Tang Minister of Industry Melanie Joly rises during Question Period in the House of Commons on Parliament Hill in Ottawa on Monday, Oct. 5, 2026. THE CANADIAN PRESS\/Justin Tang <\/p>\n

Joly says said she is not backing down. <\/p>\n

\u201cI\u2019m always open to sit down with the company and find a solution, but we\u2019re looking at everything to keep jobs in Canada,\u201d she said.<\/p>\n

Cleveland-Cliffs did not immediately respond to a request for comment, but said in a letter to Joly that it does not believe the layoffs breach any undertakings Stelco agreed to in 2024. <\/p>\n

While the two sides trade blame, hundreds of workers are caught in the middle.<\/p>\n

\u201cThis whole thing is a manufactured crisis by Cleveland-Cliffs to put pressure on our government to go get a trade deal,\u201d said Ron Wells, president of United Steelworkers Local 1005. \u201cAnd quite frankly, we don\u2019t feel appreciated. We don\u2019t appreciate being used as pawns in this game.\u201d<\/p>\n

\"\"Stelco’s steel plant in Hamilton is pictured from across the Hamilton Harbour in Burlington, Ont., on Friday, Oct. 9, 2026. THE CANADIAN PRESS\/Nick Iwanyshyn Stelco’s steel plant in Hamilton is pictured from across the Hamilton Harbour in Burlington, Ont., on Friday, Oct. 9, 2026. THE CANADIAN PRESS\/Nick Iwanyshyn <\/p>\n

It\u2019s a message reiterated by Hamilton Mayor Andrea Horwath, who is currently running for re-election in the upcoming municipal election. <\/p>\n

\u201cMy biggest concern is that the Hamilton workers, our steel workers, are becoming the casualties of this tariff war that Trump has started,\u201d she said. \u201cI\u2019m going to do everything I can to protect those workers\u2019 jobs. And it\u2019s an existential moment for our steel industry here in Hamilton.\u201d<\/p>\n

While union officials say they welcome the government enforcing the Investment Canada Act, they stress the situation is urgent and worry the legal process could take months, or even years. <\/p>\n

\u201c(Cleveland-Cliffs) told us there\u2019d be basically no job losses, no layoffs, for five years,\u201d Wells said. \u201cSo, we\u2019re glad that the government has started the process. However, that\u2019s going to be a long, drawn-out process if they take them to court. <\/p>\n

\u201cOur members, they want to get back to work now.\u201d<\/p>\n

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