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- calendar_today October 29, 2026
Minister Joly Demands Clear Path for Worker Reengagement at Stelco
Industry Minister Mélanie Joly has informed Stelco's leadership that she will only agree to a meeting if the company presents a detailed plan to bring back employees who have been laid off. In a letter dated Thursday, Joly addressed her requirements to Stelco president Paul Simon, marking the latest step in ongoing discussions between the federal government and the American owners of the Hamilton steel plant.
Layoffs Prompt Calls for Immediate Action
The call for a 'concrete and credible plan' follows recent layoffs at Stelco, announced last month when the company said it was idling operations at its Hamilton facility. As a result, workers were removed from the job, sparking concerns about job security and compliance with prior agreements under the Investment Canada Act. Joly has been direct in her correspondence, stating that workers should be immediately recalled to their positions.
Meeting Hinges on Investment Canada Act Compliance
The proposed meeting would include not just the Stelco president but also Lourenco Goncalves, CEO of Stelco's parent company, Cleveland-Cliffs. Joly emphasized that any conversation must be based on plans for worker reengagement, which she says are required for the company to remain in good standing with its legal obligations. When Cleveland-Cliffs acquired Stelco in 2024, the company pledged to maintain the number of unionized employees at the levels set in 2024 through to 2029, as part of its undertakings under the Investment Canada Act.
Cleveland-Cliffs' Stance on Obligations
Goncalves, the CEO of Cleveland-Cliffs, has publicly stated that his organization is in 'full compliance' with its commitments to the Canadian government regarding the workforce at the Hamilton steel plant. Nevertheless, after Goncalves mentioned during a television interview that his intent in acquiring Stelco was to prevent it from undercutting U.S. operations, Minister Joly said she contacted government lawyers to review the situation.
Potential Legal Action if Conditions Not Met
Joly has warned that failure to comply with the conditions set out in the Investment Canada Act could result in legal consequences for Stelco and its parent company. The government maintains that the agreed obligations form a critical part of the approval for the 2024 acquisition, specifically regarding unionized staffing levels. This ongoing exchange underscores the stakes involved for both the workforce and the companies tied to the steel industry in Canada.
Background and Next Steps
This request for a detailed plan and the insistence on a meeting only after such a plan is presented highlight the government's commitment to worker protection and corporate compliance when it comes to major industrial acquisitions. No future meeting is scheduled unless Stelco and Cleveland-Cliffs submit a plan detailing how they will return laid-off employees to their jobs.
Source: cbc.ca.
