![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/10\/90525093897ba37209f5ed518e59217e851d466ece00834ef72742ca11783ec3-1-1024x682.jpg\")
\t\t\t\t\t<\/p>\nOTTAWA \u2014 Ottawa has given the U.S. owner of Stelco Inc. a 15-day deadline to address alleged violations of commitments made when it purchased the Ontario steelmaker two years ago or face potential legal action.<\/p>\n
In a sweeping 11-page letter Thursday, Industry Minister M\u00e9lanie Joly accused Cleveland-Cliffs of failing to honour six binding commitments, including employment guarantees.<\/p>\n
Joly said the company must address its alleged violations, prove it has not broken its commitments or explain why it has failed to meet them.<\/p>\n
If the company fails to comply, she said the federal government may apply to a superior court for remedies including an order requiring Cleveland-Cliffs to divest control of Stelco.<\/p>\n
Other possible outcomes include asking for a court order requiring the company to honour its commitments or impose fines of up to $10,000 for each day it fails to comply.<\/p>\n
Ron Wells, president of United Steelworkers Local 1005, which represents workers at Stelco\u2019s Hamilton plant, called Joly\u2019s letter compelling. <\/p>\n
\u201cShe did a good job of explaining our position,\u201d Wells said. \u201cWe support the letter \u2026 we just wish the process could be faster because unfortunately our members are on the street.\u201d <\/p>\n
Meanwhile, Joly accused Cleveland-Cliffs of advocating for U.S. tariffs on Canadian steel despite its commitment to support Canada\u2019s steel industry, then using those same tariffs to justify layoffs.<\/p>\n
The U.S. steelmaker \u201chas both championed and taken credit for the U.S. tariffs, while simultaneously pointing to them to justify its actions that are resulting in its failure to comply with its undertakings,\u201d she said. <\/p>\n
The letter quotes Cleveland-Cliffs chief executive Lourenco Goncalves\u2019 written testimony to the U.S. Congressional Steel Caucus in January, in which he supported the failure of the free trade agreement between the United States, Mexico, and Canada and advocated against the manufacturing industry in Canada.<\/p>\n
\u201cSince we acquired Stelco in 2024 \u2014 before President Trump was back in office \u2014 we blocked Stelco from selling steel into the U.S. market,\u201d Goncalves said. <\/p>\n
\u201cI am glad that there is a good chance that the USMCA will not survive the 2026 review,\u201d he said at the time. \u201cWe need manufacturing in the United States. Not in Canada; not in Mexico.\u201d<\/p>\n
Cleveland-Cliffs announced plans on Sept. 28 to lay off up to 500 workers at Stelco\u2019s Hamilton Works and Lake Erie Works in Ontario, citing U.S. tariffs and challenging market conditions.<\/p>\n
The company argued that Canada\u2019s galvanized steel market is too small to support two domestic producers, Stelco and ArcelorMittal Dofasco, alongside steel imports. <\/p>\n
It has called on Ottawa to tighten import restrictions to protect Canadian production.<\/p>\n
Wells accused Cleveland-Cliffs of using its workers as leverage to pressure the federal government into tightening steel import restrictions.<\/p>\n
\u201cThey took this extreme approach to try to put pressure on Ottawa and use our members as pawns to try to blackmail the government into adjusting imports,\u201d he said. <\/p>\n
The letter discloses the exact employment commitments Cleveland-Cliffs agreed to, including maintaining an annual average of at least 1,766 full-time-equivalent unionized workers and 603 full-time-equivalent salaried workers.<\/p>\n
Meanwhile, the letter also reveals that concerns about Cleveland-Cliffs\u2019 compliance with its commitments predate the recent layoff announcement.<\/p>\n
The letter said Cleveland-Cliffs admitted in November 2025 to breaching two other undertakings related to maintaining co-op and summer student programs and supporting the community through charitable contributions.<\/p>\n
Stelco\u2019s Lake Erie Works produces hot-rolled steel used in construction and manufacturing, while Hamilton Works processes steel into cold-rolled and galvanized products, including rust-resistant zinc-coated steel used in automobiles, appliances and construction.<\/p>\n
This report by The Canadian Press was first published Oct. 22, 2026.<\/p>\n
Brett Bundale, The Canadian Press<\/p>\n
\t\t\t\t\t\t\t\t\t\t<\/p>\n
\t\t\t\tStelco steel production facility in Hamilton, Ont., on Monday, February 10, 2025. THE CANADIAN PRESS\/Nick Iwanyshyn The Canadian Press <\/p>\n
\t\tKeep it Factual<\/p>\n
Add CityNews Vancouver as a trusted source on Google to see more local stories from us.<\/p>\n
![\"Add](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/10\/1792734029_983_google-trusted-badge.png\"){kind=icon}