Minister giving Stelco owner 15 days to reverse layoffs before taking case to court

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Industry Minister Mélanie Joly is giving the American parent company of Hamilton-based Stelco 15 days to reverse layoffs before seeking legal action.

Ohio-based Cleveland-Cliffs says up to 500 temporary layoffs are due to U.S. tariffs

Darren Major · CBC News

· Posted: Oct 22, 2026 10:15 AM EDT | Last Updated: 3 minutes ago

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A steel production facility seen from across a body of water.

Industry Minister Mélanie Joly is giving the American parent company of Hamilton-based Stelco 15 days to reverse layoffs before turning to the courts.

In a "demand letter" sent to Ohio-based Cleveland-Cliffs on Thursday, Joly says the company is violating its commitments under the Investment Canada Act.

"In the event Cliffs fails to comply with this demand, the Minister may, pursuant to section 40 of the Act, make an application to a superior court," the letter, obtained by Radio-Canada, reads.

Joly indicates that if the government proceeds with legal action, it would be asking the courts to issue monetary penalties against Cleveland-Cliffs and potentially direct the company to divest from Stelco.

"I remain prepared to sit down with Cleveland-Cliffs to find a solution. But our bottom line is clear: protect Canadian jobs, defend our steel industry and ensure that commitments made to Canada are respected," Joly said in a statement.

Industry Minister Mélanie Joly answers questions from reporters in Ottawa on Oct. 14. (Justin Tang/The Canadian Press)

Cleveland-Cliffs said late last month that it plans to lay off as many as 500 workers as it idles certain steel production at Stelco, a move the federal government says violates "binding commitments" made when it bought the company in 2024.

The federal government has said the company's purchase of Stelco included promises to employ "at least the same number of unionized employees and the vast majority of non-unionized employees" as there were in 2024 through 2029.

The company said the planned layoffs are in order to "ensure the survival" of the company, as U.S. tariffs on steel squeeze its sales. But Joly has dismissed that reasoning.

"Let me be clear: no act of God or change in market conditions can relieve Cleveland-Cliffs of the commitments it made to Canada. Those commitments are not optional," she said in her statement.

ABOUT THE AUTHOR

Darren Major is a senior writer for CBC's parliamentary bureau in Ottawa. He previously worked as a digital reporter for CBC Ottawa and a producer for CBC's Power & Politics. He holds a master's degree in journalism and a bachelor's degree in public affairs and policy management, both from Carleton University. He also holds a master's degree in arts from Queen's University. He can be reached at darren.major@cbc.ca.

With files from Christian Noël

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