Prime Minister Carney Warns Cleveland-Cliffs Over Stelco Layoffs

Prime Minister Mark Carney stated Thursday that Cleveland-Cliffs would err by failing to honor its obligations and commitments regarding Stelco. The remarks follow the layoff of Canadian steelworkers by the United States-based owner, which faces potential legal action from the federal government.

Carney addressed the situation during an Ottawa event, noting that the error lies in not respecting the commitments established during the 2024 acquisition. That 2024 agreement contains legally binding terms requiring employment levels to stay at or above baseline measurements until 2029.

Industry Minister Mélanie Joly previously sent a letter demanding a concrete plan to re-engage the affected workers. While Joly stated the company is not in compliance with its undertakings under the Investment Canada Act, Cleveland-Cliffs contends it should not bear responsibility for external factors like U.S. steel tariffs.

Although the union estimates that approximately 175 employees have been let down so far, internal communications suggest that number could reach 500. Meanwhile, the company's chief executive indicated that the dismissed workers might return by the holidays if domestic sales of Canadian steel increase.