Ottawa is giving the U.S. owner of Stelco Inc. a 15-day deadline to address alleged violations of binding commitments it made when it purchased the Ontario steelmaker two years ago or face potential legal action.
In an 11-page letter Thursday, Industry Minister Melanie Joly accuses Cleveland-Cliffs of failing to honour six binding commitments made when it acquired Stelco, including employment guarantees.
She also accuses 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.
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.
Joly says 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 says the federal government may apply to a superior court for remedies including an order requiring Cleveland-Cliffs to divest control of Stelco.
The letter discloses the exact employment commitments Cleveland-Cliffs agreed to in 2024, including to maintain an annual average of at least 1,766 full-time-equivalent unionized workers and 603 full-time-equivalent salaried workers.
This report by The Canadian Press was first published Oct. 22, 2026.
