Industry Minister Mélanie Joly said she is prepared to sit down with Stelco representatives on the basis that the laid off workers are “recalled immediately.”
In a letter dated Oct. 29 obtained by Global News and addressed to Stelco’s president, Paul Simon, Joly said she expects a “concrete and credible plan for re-engagement with these workers.”
Stelco began issuing layoff notices to about 500 employees at the beginning of October following an announcement of its plans to pull back on operations at its Hamilton plant.
The company has said the employees laid off in Hamilton will be offered jobs at their Lake Erie facility but the union representing Stelco workers told Global News only 40 jobs have been offered to the impacted employees.
In a letter sent last week, Joly warned Stelco that if they do not reverse the layoffs within 15 days, the federal government will start legal action against the company that could ultimately lead to the parent company Cleveland-Cliffs being forced to divest of the Canadian steel firm.
Cleveland-Cliffs has maintained its position that one of the reasons for the layoffs is the 50 per cent tariff on aluminum and steel imposed by the U.S., which the company’s leadership has publicly supported.
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While arguing the company has not broken its agreement with the federal government, Cleveland-Cliffs has also argued they “should not be responsible for impacts of external factors beyond its control.”
Speaking to reporters Thursday, Joly said Cleveland-Cliffs and its CEO, Lourenco Goncalves, have actively supported the U.S. tariffs and must “face the consequences” they have on the Canadian market.
Joly said she reviewed an interim compliance report that was provided by Stelco on Oct. 26 but said the report was “far from satisfactory.”
“It does not alter my belief that Stelco and Cleveland-Cliffs are not in compliance with their undertakings under the Investment Canada Act as set out in my October 22 section 39 demand,” she said in the most recent letter.
The industry minister said she expects Stelco and Cleveland-Cliffs to address her demands “fully and directly” and “provide the underlying data, documents and other evidence necessary to support their assertions.”
With files from Global News’ Mackenzie Gray.
© 2026 Global News, a division of Corus Entertainment Inc.
