Stelco owner Cleveland-Cliffs says it is prepared to fight Ottawa in court over Hamilton steel layoffs

11 October 2026

Stelco, the Hamilton-based steelmaker owned by Ohio-based Cleveland-Cliffs, told Industry Minister Mélanie Joly in a letter that it will go ahead with layoffs of up to 500 workers and is not violating its commitments under the Investment Canada Act.
When Ottawa approved Cleveland-Cliffs' $3.4-billion purchase of Stelco in 2024, it attached undertakings to keep at least the same number of unionized employees and the vast majority of non-unionized employees.
Joly had given the company an ultimatum to share a plan to save the jobs or face possible legal action; her office said on 10 October that "all options are on the table".
On 11 October Cleveland-Cliffs CEO Lourenco Goncalves told CBC's Rosemary Barton Live he is prepared to fight the Canadian government in court, and that he is open to selling the company.
Stelco cites U.S. President Donald Trump's 50 per cent tariffs on steel as a key reason for the layoffs, which it calls temporary until Canada and the U.S. reach a trade agreement.