Canada’s Stelco to recall 175 workers after government pressure
Canadian steelmaker Stelco will recall all 175 laid-off workers and pay them retroactive wages, following government intervention against its US owner.
The announcement on Friday came shortly after Canada's Industry Minister Melanie Joly said she would seek a court order to force Cleveland-Cliffs to sell Stelco unless she heard from management by the end of the day. The company said it had reached agreements with enough customers to restart its finishing operations and that workers would be recalled on December 1.
Government Pressure
Ottawa had argued that Cleveland-Cliffs' layoffs violated binding commitments made when it acquired Stelco in 2024, including maintaining the same number of Canadian unionized employees through 2029. The government also criticized CEO Lourenco Goncalves for publicly supporting Trump's steel tariffs while blaming them for Stelco's financial troubles.
This fight was absolutely worth it
Union Reaction
United Steelworkers Local 1005 president Ron Wells welcomed the announcement, crediting pressure from workers, the union and the government. He called the layoffs 'illegal' and 'immoral' at a news conference where Joly was present.
Cleveland-Cliffs had initially laid up to 500 workers at Stelco's plants in Hamilton and Nanticoke, Ontario, citing weak demand and difficult market conditions for steel products. The company blamed US tariffs on Canadian steel and competition from cheaper foreign imports.
Company Response
In its statement, Cleveland-Cliffs claimed its customers had committed to supporting operations in Hamilton 'despite the lack of response from the federal government to address the shortfalls in their tariff response program.' The company did not provide details on the customer agreements or explain what had changed to make restarting operations viable.
Related
