Stelco, the steel manufacturer based in Hamilton, is set to reinstate the 175 employees who were laid off earlier this autumn.
The company announced this decision through a news release on Friday, confirming that the workers would return to their jobs by December 1. Additionally, Stelco stated that it would provide retroactive pay for the duration of their layoff.
In September, Cleveland-Cliffs, Stelco’s American parent company, revealed plans to lay off up to 500 workers due to a halt in certain steel production activities at Stelco.
Ron Wells, president of United Steelworkers Local 1005, expressed to CBC News Network that the announcement made on Friday was a “considerable victory.”
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“They are compelled to adhere to their commitments, and we are pleased with that,” Wells shared with host Andrew Nichols.
The federal government indicated that any layoffs would breach “binding commitments” made by Cleveland-Cliffs during its acquisition of Stelco in 2024.
In mid-October, Industry Minister Mélanie Joly contacted the Ohio-based company, insisting that it rescind the layoffs or face potential legal repercussions.
Initially, Cleveland-Cliffs attributed the layoffs to U.S. tariffs, a decline in demand for Canadian steel, and competition from imported steel products. However, Stelco’s statement on Friday also acknowledged these challenges while noting that the company received reassurances from its clients.
“Our clients have pledged to support our Hamilton finishing operations despite the federal government’s lack of response to address the deficiencies in their tariff-response program and the ongoing influx of offshore imports of galvanized products that have diminished our domestic market,” the statement read.
Industry Minister Mélanie Joly said on Friday that she plans to ask a court to order U.S. steel company Cleveland-Cliffs to sell Ontario-based Stelco if she doesn’t hear from them by the end of day. She said the federal government has this power because Cleveland-Cliffs is in breach of the Investment Canada Act. Joly made the comments before Stelco announced it would recall 175 laid-off workers on Dec. 1.
The government asserts that Cleveland-Cliffs had committed to maintaining the number of unionized workers at levels established in 2024 until 2029 as part of its original purchase agreement.
Just before Stelco’s announcement, Joly indicated she would seek a court order to compel Cleveland-Cliffs to divest the Hamilton facility if no communication was received from the company by the end of the day.
After the news broke, Joly stated to CBC’s Power & Politics that the recall of workers represents a “significant victory.” She mentioned that the government would not pursue legal action once official notification of the workers’ return was received from the company.
“I need to ensure that I see the CEO of Cleveland-Cliffs sign on a document,” Joly emphasized.
“When that occurs, we can move forward and ensure that Stelco remains firmly established.”
Wells acknowledged the contributions of the workers, the union, and the government in influencing the company’s decision.
“Our members who were laid off deserve recognition for their efforts, as they pressed the union, which in turn pressured the government, leading to the enforcement of the Canada Investment Act. This is a positive outcome for Canada,” the union leader stated.
Cleveland-Cliffs CEO Lourenco Goncalves revealed to Power & Politics last month that his initial acquisition of the Hamilton facility was to prevent it from undermining his U.S. operations.
“I purchased Stelco because I could no longer afford to have Stelco saturating the market here in the United States, harming my own enterprise,” Goncalves explained to host David Cochrane.
Joly characterized Goncalves’s remarks as a “shocking admission” and requested that the competition bureau investigate whether Cleveland-Cliffs had violated the Competition Act.