Ottawa Presses Cleveland-Cliffs for Stelco Jobs Restoration Plan

the exterior of a large, quiet industrial steel manufacturing plant with tall smokestacks and heavy metal piping, featuring a mostly empty employee parking lot

AI-generated illustration; not a photograph of the reported event.

  • calendar_today October 27, 2026

Ottawa Seeks Employment Plan for Stelco Workers

Industry Minister Mélanie Joly has called on Cleveland-Cliffs, the U.S.-based owner of Stelco Inc., to present a detailed plan and timeline for the restoration of jobs at Stelco's Canadian steel mills. This demand comes ahead of any potential meeting with CEO Lourenco Goncalves.

Cleveland-Cliffs Claims Compliance with Job Commitments

Cleveland-Cliffs, which acquired Stelco in 2024, maintains that it is fully complying with the requirements set out in the Investment Canada Act. The company asserts that all promises made to secure approval for the purchase are being honored, particularly those related to employment figures at the steel manufacturer.

Talks on Job Restoration Requested

According to the company, Stelco has already initiated a request for a meeting between Industry Minister Joly and CEO Goncalves. The purpose of this meeting would be to discuss a potential path towards full employment for Stelco workers who have been subjected to temporary layoffs at the company's steel mills.

Minister Joly Demands Specific Commitments

On Tuesday, Joly told reporters that the federal government wants to see a concrete plan to bring back laid off workers before arranging any direct discussions with Cleveland-Cliffs' leadership. She highlighted that the company has not met certain binding commitments, including a five-year pledge to maintain at least the same number of unionized workers and the majority of non-unionized employees as were present when Cleveland-Cliffs took control of Stelco.

Government Considers Legal Action

In response to what she describes as unmet obligations, Joly said Ottawa still has options available. These include pursuing court action, seeking financial penalties, or potentially requiring Cleveland-Cliffs to sell Stelco. She emphasized the government's stance on holding the company accountable for its job commitments under the Investment Canada Act.

Background: Layoffs at Canadian Steel Mills

The situation follows the temporary layoff of hundreds of Stelco employees, which has prompted scrutiny of Cleveland-Cliffs' stewardship and compliance with the conditions tied to the acquisition. The government is now asking for a timeline and a specific employment plan aimed at job restoration for the affected Stelco workforce.

Ongoing Developments

The outcome of this demand could influence both the future of Stelco's Canadian operations and broader expectations for foreign-owned manufacturers in Canada. As of now, Minister Joly is awaiting a formal employment plan from Cleveland-Cliffs as a prerequisite for further talks regarding the future of Canadian steel jobs and the company’s compliance with its obligations.

Source: globalnews.ca.

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