Stelco says Hamilton layoffs still happening despite Ottawa's threats of legal action. In a letter obtained by CBC News, Stelco Inc. says it is not violating employment commitments. Racy Rafique · CBC News · Posted: Oct 10, 2026 11:14 AM PDT | Last Updated: 3 hours ago Estimated 4 minutes Hamilton-based steelmaker Stelco says it will proceed with hundreds of layoffs, despite threats of legal action from the federal government. In a letter obtained by CBC News, Stelco Inc., which is owned by Ohio-based Cleveland-Cliffs, says it rejects allegations from Ottawa that it is violating binding employment commitments under the Investment Canada Act (ICA). "Your representation that Stelco's planned layoffs cause it to breach its undertakings is false," says a letter written to Industry Minister Mélanie Joly by Paul Simon, president and general counsel at Stelco Inc. Citing the ICA's guidelines, Simon went on to write that "the undertakings do not stipulate a commitment to avoid layoffs, nor do they include a requirement that employment levels be above a certain amount on each day of the five years of the undertakings." The letter comes after Joly issued an ultimatum last week to the company: share a plan to save the up to 500 jobs that could be impacted at the Hamilton plant or face potential legal action. WATCH | Up to 500 Stelco employees impacted by layoffs: Stelco layoffs start despite Ottawa's legal threats October 8| 2:24 Stelco started laying off steelworkers at its Hamilton plant despite government demands that it reveal a jobs-saving plan within five days or face potential legal action. In a statement to CBC News, Ron Wells, president of United Steelworkers Local 1005, said he was "not surprised with Stelco's convoluted response." "The bigger problem is that the union, which represents the affected workers, was not privy to the agreement in the first place," he said. "As the group with the most at risk, we weren't consulted or [given] a chance to review the undertakings." Cleveland-Cliffs acquired Stelco in a $3.4-billion cash-and-stock deal that, according to a news release at the time, kept "national interests at the forefront" and recognized the "importance of the workforce." According to Joly's letter, this includes "undertakings to continue to employ at least the same number of unionized employees and the vast majority of non-unionized employees as were employed when the transaction was announced." In a statement to CBC News on Saturday, Joly's office said the federal government still expects Steclo to "meet its legally binding commitments to employees." "These commitments were agreed upon as undertakings under the Investment Canada Act and do not cease to apply because of changing business strategy or market conditions," the statement said. "As our legal team reviews the Stelco letter, all options are on the table." WATCH | Carney says feds will pursue legal action if needed against Stelco: Stelco 'betrayed' Ontario workers with layoffs, Carney says September 29| 1:16 Prime Minister Mark Carney says Canada will 'use all the powers that we have' to ensure that Stelco meets its 'legal obligations for employment.' The company, which is owned by U.S.-based Cleveland-Cliffs, announced plans on Monday to idle some production at its Hamilton plant, putting hundreds of workers out of a job. Prime Minister Mark Carney also said last week that Ottawa will "use all powers that we have" against Cleveland-Cliffs as it pursues the Ohio-based company to the "fullest extent of the law." In 2009, Industry Canada sued Stelco's previous owner, U.S. Steel, over job protection. The matter was settled out of court in 2011. Stelco alleges Ottawa knew of its intentions. In its letter to Joly, the company emphasized "Stelco's situation is a result of factors beyond its control" - citing the impact of U.S. President Donald Trump's 50 per cent tariffs and the ongoing trade war. The federal government has said that Stelco refused offers of financial support before choosing to announce it was idling its Hamilton plant. Stelco's letter alleges that "the government's offers of financial assistance were not responsive to the issues at hand and did not address the root cause for Stelco's decision to indefinitely idle its Hamilton Works finishing lines." The company goes on to allege that the industry minister was "inaccurate and misleading to the Canadian public" when she said Ottawa only recently learned of Stelco's intentions. Stelco alleges that it was in constant communication with the federal government about its financial concerns. "By failing to mention or acknowledge these regular communications, your letter created the false impression that we have not been co-operative and transparent." Stelco did present a plan to comply with ICA job commitments in its letter, as requested by Joly. The company reaffirmed that it will proceed with its Hamilton layoffs, again citing "exenstive external factors" that make it difficult to produce and profit off of those steel products. It said laid off workers could be given the opportunity to fill open positions at its Lake Erie plant. Stelco said it would continue to engage with the federal government. In terms of what the company wants to see from Ottawa, it wrote: "The most important step the government could take would be to impose further restrictions on imports of cold-rolled and coated steel products into Canada, limit import substitution, and eliminate remissions for steel products that Canadian producers, including Stelco, can supply." CBC Journalist Racy Rafique is a producer for CBC's national television program Power & Politics. She also works as a writer covering federal politics for CBC's parliamentary bureau from time to time. Racy was a 2023 CBC Joan Donaldson Scholar and is a graduate of Toronto Metropolitan University. You can reach her at [email protected]. With files from Jeff Lagerquist

Randall Denley: Ford wisely keeps his cool over Stelco's layoffs. Randall Denley Thu, October 1, 2026 at 11:29 a.m. PDT Ontario Premier Doug Ford is showing admirable restraint in the face of the latest tariff-related layoffs. Tuesday, Stelco announced the indefinite layoff of 350 steelworkers in Hamilton and Nanticoke, Ont. citing U.S. tariffs. One would have expected a classic rant from the premier, something along the lines of his pouring out a bottle of Crown Royal whisky last fall and complaining loudly because the distiller was closing an Ontario bottling plant (even though the product would still be made and bottled in Canada). Ford had already taken a run at Stelco's American boss last year, saying he "doesn't give two hoots" about his Canadian workers because he supports tariffs. The premier went on to suggest that Stelco should get a new owner, or perhaps the provincial government should buy it. Ford's target was Lourenco Goncalves, the president and CEO of Cleveland-Cliffs, the American company that owns Stelco. Goncalves had praised American steel tariffs, the same ones that have now come back to bite his own Canadian operations. Rather than blasting Goncalves after the layoff news this week, Ford let Ontario Finance Minister Peter Bethlenfalvy lead the government response. The minister called the Stelco layoffs "a business decision," which is exactly what it was. In an interview with Global News, Goncalves said the affected operations produce more galvanized steel than the Canadian market itself can absorb and so they only make sense if they can export to the U.S. "I need an ability to sell more galvanized steel. I can't increase the domestic market in Canada... if they (Americans) shut down imports of galvanized completely, 100 per cent, we still have more production of galvanized steel in Canada than the domestic markets of Canada. So there's only one solution. We need to be able to export." Bethlenfalvy said Stelco was eligible for government financial help but did not apply for it. Good for them. Why take taxpayers' money to keep producing steel for which there is no market? Not that Ontario was unwilling to fund that futile activity. Bethlenfalvy said Stelco's failure to ask for government help was "unfortunate," then added "But we stand at the ready... our door is always open." Bethlenfalvy cited the $100-million loan the provincial government gave Canadian-owned Algoma steel last year. Shortly after receiving the money, the company laid off 1,000 workers. By those standards, the Stelco layoff was a bargain. While the layoffs are indefinite, it's unlikely that Stelco will disappear altogether. Cleveland-Cliffs paid $3.4 billion for Stelco just two years ago. That would be a big hit to take. While Ontario's response was muted, Prime Minister Mark Carney reacted strongly. He said the workers were "betrayed by the company," which had made commitments to maintain employment when it bought Stelco in 2024. Carney said there was federal money available to help Stelco retain its workers, but the company wouldn't take it. Again, good on Stelco. Given Carney's background in economics, one would have expected him to understand that there's no point in making a product that lacks a market. Part of the problem that Canadian-based steelmakers have is that while Canada talks a good game about buying Canadian, the country imports a lot of foreign steel. Canada imports between 60 and 65 per cent of the steel it uses, most of that from the U.S. The federal government has taken modest steps to limit steel imports, but the big pressure comes from the Americans' 50 per cent tariff on Canadian steel exports. About half of Canada's steel production goes to the U.S. The Ford government didn't skate away from the Stelco issue without some awkwardness. Ford's theme in the last election was "Protect Ontario" and that has been the slogan and unifying element of most of what he's done since. As the steel layoffs illustrate, there's a limit to government's ability to protect jobs when tariffs make an industry's product no longer viable. That hasn't stopped the government from spending public money on an incessant ad campaign promoting the Protect Ontario theme. The online publication The Trillium has reported that the government spent $19.5 million on Protect Ontario ads in 2025-26. New Democrat MPP Jamie West hit the nail on the head when he said that workers are "sick and tired of seeing these Protect Ontario ads but not seeing any workers protected." It was also revealed Tuesday that at least one element of Ontario's protection plan has been rather oversold. Bethlenfalvy faced questions from a legislature committee about a $5-billion Protect Ontario fund that it had promised to use to help companies hurt by tariffs. It turns out that only $140 million has been provided so far. All but $40 million of that was consumed by the handout to Algoma Steel. Billions of dollars from the account were supposed to be transferred into a new fund designed to support investment opportunities in emerging economic sectors. That plan is now on the back burner, Bethlenfalvy said, citing economic uncertainty. Ford's Protect Ontario plan is a bit wobbly, but his government deserves at least some credit for not overreacting to the Stelco layoffs. With tariffs and counter-tariffs in place, some job losses are inevitable. Reacting with outrage doesn't make much sense. National Post [email protected]

Stelco to lay off 350 steelworkers at Hamilton plant, union says. Updated: September 28, 2026 at 3:07p.m. EDT Published: September 28, 2026 at 3:05p.m. EDT The union representing steelworkers at Stelco Holdings Inc. has confirmed to CTV News that 350 employees at its plant in Hamilton, Ont. will be laid off. United Steelworkers Local 1005 verified the planned layoffs on Monday afternoon but did not provide any further details. Stelco declined an interview but in a statement to BNN a spokesperson said its Hamilton Works facility is currently idling its finishing operations while continuing to concentrate steel production in Lake Erie. "Very importantly, job opportunities at Lake Erie Works will be offered to Hamilton employees. We expect that a significant number of employees affected by the indefinite idle at Hamilton should be absorbed at Lake Erie Works," a spokesperson wrote in an email. Stelco also said the amount of steel they produce will not be impacted by the Hamilton plant's idling, though there will be a "change in product mix, with a higher concentration of hot rolled steel products." Cleveland-Cliffs, an American-based steel manufacturer, acquired Stelco Holdings in a $3.4-billion deal in 2024. Province will 'use every tool to help affected workers' In a written statement provided to CTV News Toronto, a spokesperson for Ontario's Minister of Economic Development, Job Creation, and Trade Vic Fedeli said the Ford government will "use every tool we have to help affected workers." "We are ramping up services at our POWER Centre in Hamilton, where we recently increased funding by nearly 50 per cent, to connect workers with training and help them find new jobs as quickly as possible," they said. "As part of our $30-billion tariff relief and support plan, we have also expanded the Protect Ontario Financing Program and the Ontario Together Trade Fund to help more businesses hit by tariffs. Through our Buy Ontario approach, we are putting Ontario steel first when the government buys materials." The spokesperson went on to say that they understand the federal government is reviewing its legal options to protect Stelco workers. "As it does, we need Ottawa to speed up its purchase of Ontario-made steel. That steel should build the pipelines, critical infrastructure, ships and defence equipment our economy needs to remain strong and self-reliant for generations to come," they wrote. Premier recently called out Stelco's owners. Ontario Premier Doug Ford slammed the owners of Stelco in August last year, accusing the chairman of "signing away" Canadian steel to the United States and supporting U.S. President Donald Trump's tariffs on numerous occasions. "I got a problem with that guy," Ford said at a news conference. Lourenco Goncalves, the chairman and CEO of Cleveland-Cliffs, had said in July that, without further trade protections "the future competitiveness of our galvanizing lines in Hamilton is at risk." "We continue to defend our point of view with the Canadian government officials, asking them to do what is right to protect the steel industry in Canada, just as our American government has done here in the United States," he said. The U.S. slapped a 50 per cent tariff on Canadian steel imports on Aug. 22.