Ottawa gives Stelco owner 15 days to address alleged violations or face legal action. Feds give Stelco 15 days. Brett Bundale, The Canadian Press - Oct 22, 2026 / 10:42 am | Story: 635282 Stelco steel production facility in Hamilton, Ont., on Monday, February 10, 2025. THE CANADIAN PRESS/Nick Iwanyshyn Ottawa has given the U.S. owner of Stelco Inc. a 15-day deadline to address alleged violations of commitments made when it purchased the Ontario steelmaker two years ago or face potential legal action. In a sweeping 11-page letter Thursday, Industry Minister Mélanie Joly accused Cleveland-Cliffs of failing to honour six binding commitments, including employment guarantees. Joly said the company must address its alleged violations, prove it has not broken its commitments or explain why it has failed to meet them. If the company fails to comply, she said the federal government may apply to a superior court for remedies including an order requiring Cleveland-Cliffs to divest control of Stelco. Other possible outcomes include asking for a court order requiring the company to honour its commitments or impose fines of up to $10,000 for each day it fails to comply. Ron Wells, president of United Steelworkers Local 1005, which represents workers at Stelco's Hamilton plant, called Joly's letter compelling. "She did a good job of explaining our position," Wells said. "We support the letter... we just wish the process could be faster because unfortunately our members are on the street." Meanwhile, Joly accused Cleveland-Cliffs of advocating for U.S. tariffs on Canadian steel despite its commitment to support Canada's steel industry, then using those same tariffs to justify layoffs. The U.S. steelmaker "has both championed and taken credit for the U.S. tariffs, while simultaneously pointing to them to justify its actions that are resulting in its failure to comply with its undertakings," she said. The letter quotes Cleveland-Cliffs chief executive Lourenco Goncalves' written testimony to the U.S. Congressional Steel Caucus in January, in which he supported the failure of the free trade agreement between the United States, Mexico, and Canada and advocated against the manufacturing industry in Canada. "Since we acquired Stelco in 2024 - before President Trump was back in office - we blocked Stelco from selling steel into the U.S. market," Goncalves said. "I am glad that there is a good chance that the USMCA will not survive the 2026 review," he said at the time. "We need manufacturing in the United States. Not in Canada; not in Mexico." Cleveland-Cliffs announced plans on Sept. 28 to lay off up to 500 workers at Stelco's Hamilton Works and Lake Erie Works in Ontario, citing U.S. tariffs and challenging market conditions. The company argued that Canada's galvanized steel market is too small to support two domestic producers, Stelco and ArcelorMittal Dofasco, alongside steel imports. It has called on Ottawa to tighten import restrictions to protect Canadian production. Wells accused Cleveland-Cliffs of using its workers as leverage to pressure the federal government into tightening steel import restrictions. "They took this extreme approach to try to put pressure on Ottawa and use our members as pawns to try to blackmail the government into adjusting imports," he said. The letter discloses the exact employment commitments Cleveland-Cliffs agreed to, including maintaining an annual average of at least 1,766 full-time-equivalent unionized workers and 603 full-time-equivalent salaried workers. Meanwhile, the letter also reveals that concerns about Cleveland-Cliffs' compliance with its commitments predate the recent layoff announcement. The letter said Cleveland-Cliffs admitted in November 2025 to breaching two other undertakings related to maintaining co-op and summer student programs and supporting the community through charitable contributions. Stelco's Lake Erie Works produces hot-rolled steel used in construction and manufacturing, while Hamilton Works processes steel into cold-rolled and galvanized products, including rust-resistant zinc-coated steel used in automobiles, appliances and construction.

Carney and Ford throw Canada's steel, auto and critical mineral industries a $9-billion lifeline. October 21st 2026 Prime Minister Mark Carney and Ontario Premier Doug Ford made their announcement at Parliament Hill. Photo by: Justin Tang / The Canadian Press Ontario's struggling manufacturing and critical minerals sectors will get a $9-billion bump over the next five years, with billions earmarked to support steel companies as hundreds of workers face imminent layoffs. More than $5-billion of the support package will flow to Ontario's steel industry to help manufacturers pivot to new supply chains and protect domestic producers against foreign dumping, Prime Minister Mark Carney and Ontario Premier Doug Ford explained in a Wednesday announcement. The newly minted Joint Steel Action Fund will help mills upgrade their equipment to "make the steel that Canadian companies need," Carney said. Ford added that this steel will be used to build pipelines, defence technology and expand the province's nuclear energy production. The announcement comes at a critical point for the province's steelworkers, particularly the hundreds facing layoffs at Hamilton, Ont.-based manufacturer Stelco. The plant's American owners, Cleveland-Cliffs Inc., have pinned the layoffs on market pressures, citing the US's 50 per cent tariffs on Canadian steel as a reason to reduce its operations. However, Carney and Mélanie Joly, the Minister of Industry, say the layoffs violate the company's commitments to the federal government under the Investment Canada Act. Joly has repeatedly threatened Cleveland-Cliffs with legal action if the company fails to reinstate the workers already cut and save those still on the chopping block. When asked why Ottawa has not yet initiated legal proceedings against Cleveland-Cliffs, Carney said the government is following due process and is willing to "sit down" with Stelco to reach an agreement. Ford said he supports the federal government's response to Cleveland-Cliffs and will do "whatever it takes" to protect steelworkers' jobs. Also at the announcement, Carney pledged $1-billion in federal investment to help build roads to northern Ontario's Ring of Fire, an area rich in the critical minerals used for electric vehicles and batteries. This extra funding comes on top of Ontario's previous $1-billion commitment. While the federal government has previously supported the Ring of Fire project by limiting regulatory oversight, this marks Ottawa's first direct investment in the mining project since Ford demanded federal support last June. Progress on the Ring of Fire has been incremental - Ontario broke ground on the region's road network last summer - and the project is opposed by some First Nations concerned that fast-tracking development will impede on environmental protections and their treaty rights. Another $2.5-billion of the total $9 billion pledge will go to Ontario's auto sector, one of the industries most afflicted by the ongoing trade war. Canadian auto exports to the U.S. have fallen more than 10 per cent in the last year. Carney characterized Wednesday's announcement as a "major step forward" in the government's efforts to encourage electric vehicle production. EVs are expected to account for more than 40 per cent of global auto sales within the next five years. "An integrated North American auto sector will be stronger, more competitive and provide better jobs," Carney said. "But we recognise that these are not necessarily the current objectives of the US administration." Carney told reporters that he spoke with US President Donald Trump on Wednesday morning and confirmed he remains willing to negotiate a trade deal that protects Canadian interests. October 21st 2026

Carney, Ford announce $9B 'new action plan' for Ontario industries. Posted October 21, 2026 10:47 am Updated October 21, 2026 5:45 pm The federal government is spending $8.7 billion along with the provincial government on key Ontario industries as pressure from the trade war with the U.S. builds, Prime Minister Mark Carney and Ontario Premier Doug Ford announced on Wednesday. The "new action plan" includes $1 billion spent to develop capacity in the Ring of Fire, a mineral-rich region in northern Ontario known for critical mineral development, as well as $5 billion on steel mills to ensure that steel workers can keep their jobs, Carney said, adding that it will protect 100,000 jobs in the sector. "From mine to mill to line, we are connecting all the links in the value chain as part of a larger plan," Carney said. Ottawa will also spend $2.5 billion on the auto sector's assembly line plants in Ontario, Carney said, with the aim of safeguarding 120,000 jobs, he added. This includes spending on upgrading machinery and production lines at auto assembly plants. Carney also announced a $5 billion joint steel action fund with Ontario, that would help the steel industry diversify. Carney also announced that the CBSA would strengthen protections against foreign steel dumping, in addition to announcing a new Canada-Ontario Steel Task Force, which would advise the industry on how to reduce steel shipping costs and provide guidance to the industry on import trends. "At present, our steel companies rely heavily on the auto sector. In the future, pipes, rail, ports, defence will be increasingly important sources of demand," he said. The fund will also help the sector find new market overseas and "fortify Ontario's industrial base." "This funding will fortify these critical sectors, keeping workers on the job today," Ford said. Story continues below advertisement The federal government is also looking to match the provincial government's $1 billion investment to build a 500 km-long highway to the Ring of Fire, Carney said. Get breaking national news. While an "integrated North American auto sector will be stronger," Carney said he recognizes that these "are not necessarily the current objectives of the U.S. administration." "Their approach as changed, and so must ours," he said, adding that Canada still remains open to making a trade deal "when the U.S. is ready to sit down in good faith." The announcement comes as workers at an Ontario-based steel manufacturing plant are facing imminent layoffs. Stelco announced last month that pressure from U.S. tariffs forced it to concentrate steel production at its Lake Erie Works plant in Haldimand, and halt production at its plant in Hamilton. Some employees would be offered transfers, but many would be out of work. Story continues below advertisement A resolution of the standoff between the federal government and Stelco is a "question of days," Industry Minister Melanie Joly said on Friday. The federal government believes there have been "multiple breaches of the commitments" that Stelco made under the Investment Canada Act. Stelco is facing financial penalties and "a potential forced divestiture," which would force them to sell all their assets in Canada, Joly said. Finance Minister Francois-Philippe Champagne said on Tuesday that the federal government would release its federal budget on Nov. 5, two days after the U.S. midterm elections. Champagne announced the date during question period on Tuesday. The budget will be second as Carney, who changed the schedule for how federal budgets are released by moving them from spring to fall. Story continues below advertisement Carney's second budget date comes after the Parliamentary Budget Officer trimmed the 2026 and 2027 outlook for economic growth. The PBO now projects gross domestic product growth of 0.9 per cent for this year and 1.5 per cent for 2027, down from 1.1 per cent and 1.6 per cent respectively. -with files from Global's Sean Previl (C) 2026 Global News, a division of Corus Entertainment Inc.