{"id":937692,"date":"2026-10-18T14:06:18","date_gmt":"2026-10-18T14:06:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/937692\/"},"modified":"2026-10-18T14:06:18","modified_gmt":"2026-10-18T14:06:18","slug":"stelco-is-having-a-great-year-ceo-confirms-profits-accusing-ottawa-of-harassment-as-steelworkers-are-out-of-work","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/937692\/","title":{"rendered":"‘Stelco is having a great year’: CEO confirms profits, accusing Ottawa of harassment as steelworkers are out of work"},"content":{"rendered":"

\"Lourenco<\/a> Lourenco Goncalves CEO of Stelco’s parent company + Stelco plant in Hamilton, Ontario <\/p>\n

“Stelco is having a great year, we are making money,” the company’s top boss Lourenco Goncalves said in an interview this week. <\/p>\n

Goncalves message appears tone-deaf considering hundreds of Hamilton, Ontario steelworkers now hold layoff notices \u2014 a result of an ongoing trade war fuelled by U.S. President Donald Trump. <\/p>\n

Stelco was bought by U.S. steelmaker Cleveland-Cliffs (NYSE:CLF) in 2024; at the time CEO Goncalves made promises to Canadian officials that the plant \u2014 and it’s employees \u2014 could count on a steady, secure future. <\/p>\n

Don’t Miss <\/p>\n

In his message this week, Goncalves describes the job cuts as temporary and confirmed the company plans to rehire terminated workers \u2014 in due time. <\/p>\n

Ottawa isn’t convinced. The federal government has stated the layoffs break promises made when the takeover was approved. As a result, federal Industry Minister, M\u00e9lanie Joly, raised the possibility of financial penalties for Stelco and even suggested a forced sale of assets. <\/p>\n

Goncalves response was to call Ottawa’s stance bullying and harassment; he says the company is prepared to fight in court. <\/p>\n

While the two sides dig in, laid-off workers face a problem much closer to home: a “temporary” layoff with no end date, and bills that don’t pause due to a blip in employment. <\/p>\n

What’s happening at Stelco, and how long could it drag on? <\/p>\n

Goncalves recent comments were during an exclusive interview with <\/a>BNN Bloomberg<\/a> on Oct. 15. He referred to the cuts as a business decision to help concentrate production. Last month, Cleveland-Cliffs announced it would shutter part of its Hamilton operation and let go of up to 500 employees, citing U.S. tariffs as the reason. <\/p>\n

In an Oct. 9 letter to Joly, as reported by the Canadian Press, Stelco President Paul Simon said Canadian exports of cold-rolled and coated steel to the U.S. have dropped 58% from pre-trade-war levels<\/a>. At the same time, Simon said the company was preparing to restart its Hamilton, Ont. finishing operations \u2014 but offered no concrete timeline. <\/p>\n

The Stelco layoffs come at a time when the wider job market can’t offer much of a cushion. Statistics Canada reports Canada lost 68,000 jobs in September<\/a>, with Ontario’s unemployment rate now sitting at 7%. Fewer than 1 in 3 unemployed Canadians found work from August to September \u2014 that’s a job-finding rate of 30.6%, compared with an average of 36.5% from 2017 to 2019. <\/p>\n

Story Continues <\/p>\n

Read More: How financially stable am I? You’re doing better than most if you check off just 1 of these 3 boxes<\/a> <\/p>\n

Is there a legal limit on a ‘temporary’ layoff? <\/p>\n

For the Stelco workers with termination papers, the immediate question is whether or not there is a legal limit to a firm’s ‘temporary’ layoff? In Ontario, the answer is set by the Employment Standards Act (ESA)<\/a>. <\/p>\n

Generally, a layoff can run up to 13 weeks in any 20-week period. However, it can stretch to 35 weeks in a 52-week period if the employer keeps up certain payments, such as benefits. Anything past those limits and the layoff is usually treated as a termination, which can trigger both termination and severance pay. <\/p>\n

Union members should also know that the rules can work differently for them. Under the ESA, a collective agreement can allow for a longer layoff if the employer recalls its workers within the period the agreement sets out. Limits also vary by province. <\/p>\n

How much of your paycheque will EI actually replace? <\/p>\n

For employees eligible for Employment Insurance (EI), regular benefits pay 55% of your average insurable weekly earnings, up to a maximum of $729 a week in 2026<\/a>, according to the Government of Canada. For example, a worker who earned $1,800 per week before tax would hit that cap, with EI replacing roughly 40% of their gross pay. And EI benefits are also taxable. <\/p>\n

To soften the blow \u2014 since many industries and firms are affected by this ongoing trade war \u2014 the federal government has made some temporary changes by extending its EI relief measures<\/a> (originally introduced early in the U.S.\/Canada trade war). For claims starting between Oct. 11, 2026, and Oct. 9, 2027, the usual one-week waiting period is waived. Additionally, severance or vacation pay won’t delay or reduce benefits. <\/p>\n

Workers with a lengthy history of paying into EI can also qualify for up to 20 extra weeks of benefits on claims started by June 12, 2027. <\/p>\n

For Canadians facing unemployment, here’s what to do now <\/p>\n

Don’t let the word “temporary” put your financial planning on hold. Here are five moves to make if you find yourself laid off in the near future: <\/p>\n

Apply for EI as soon as your job ends, even if you expect a recall at some point <\/p>\n

Read your layoff notice, as well as your employment contract or collective agreement for recall rights, benefit coverage and any employer top-up to EI <\/p>\n

Mark the 13-week and 35-week dates on your calendar, and talk to your union rep or an employment lawyer if they pass without a recall \u2014 you may be considered terminated <\/p>\n

Build a bare-bones budget around EI-level income, and call your mortgage lender, landlord or credit card issuer before you miss a payment to let them know of your unemployment status <\/p>\n

Tap a tax-free savings account (TFSA) before a registered retirement savings plan (RRSP), since TFSA withdrawals are tax-free and the room comes back next year. RRSP withdrawals are taxed as income and the contribution room is lost <\/p>\n

A layoff may well be temporary on paper. But with Ottawa and Cleveland-Cliffs headed for possible litigation and no restart date on the table, the safest bet is to plan for a longer gap. Treat a recall as a bonus, not a budget line. <\/p>\n

What To Read Next <\/p>\n

The most expensive financial mistakes are often the ones you don’t see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances \u2014 delivered free each week. Subscribe now.<\/a> <\/p>\n

This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"Lourenco Goncalves CEO of Stelco’s parent company + Stelco plant in Hamilton, Ontario “Stelco is having a great…\n","protected":false},"author":2,"featured_media":937693,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194295],"tags":[15261,45,161,49,48,46,133,1828,1829,74172,1830,1831,39783,8123,20739,131,2519,968,1705,2511,1832,1833,176,74173,3322,74174],"class_list":["post-937692","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ottawa","tag-401k","tag-business","tag-business-news","tag-ca","tag-canada","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-ottawa","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/937692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=937692"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/937692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/937693"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=937692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=937692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=937692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}