Cleveland-Cliffs CEO, Lourenco Goncalves, has stated his readiness to challenge the Canadian government in court over Stelco’s decision to lay off hundreds of employees. Goncalves, speaking on CBC’s “Rosemary Barton Live,” refuted the government’s claim that the company is breaching employment commitments mandated by the Investment Canada Act.
According to Industry Minister Mélanie Joly, Cleveland-Cliffs’ acquisition of Stelco in 2024 included obligations to maintain the same number of unionized and non-unionized workers until 2029. Goncalves clarified that there is no contractual requirement to uphold employment levels daily over the five-year period. He emphasized that the layoffs are temporary until a trade agreement is reached between Canada and the U.S., with the intention to reinstate the jobs.
Additionally, Goncalves expressed openness to selling the company and endorsed U.S. tariffs on Canadian steel, despite Stelco attributing its economic challenges to tariffs. Joly issued an ultimatum to Cleveland-Cliffs, demanding a plan to safeguard up to 500 jobs at the Hamilton plant, threatening legal action if not complied with. Prime Minister Mark Carney affirmed the government’s commitment to pursuing legal action against Cleveland-Cliffs.
Stelco responded to Joly’s ultimatum, asserting its decision to proceed with the layoffs and dismissing the government’s allegations of breaching commitments as untrue. The company attributed its current situation to external factors, including the impact of U.S. President Donald Trump’s tariffs. Goncalves reiterated his support for steel tariffs against Canada and emphasized the benefits of Section 232 tariffs in reviving the American steel industry.
Regarding a potential sale of the company, Goncalves indicated willingness if presented with a favorable offer while expressing confidence in Stelco’s role in Canada. Stelco employees affected by the layoffs, like Jordan Williams, are seeking assurances from Goncalves regarding job protection and future plans for Hamilton’s steel operations. President of the United Steelworkers Local 1005, Ron Wells, anticipates layoffs in Hamilton and Nanticoke, urging the government to hold Cleveland-Cliffs accountable for its actions.