Stelco to proceed with Hamilton steel layoffs despite Ottawa’s legal warnings
Stelco says it will continue cutting jobs at its Hamilton plant even though the Canadian government has warned of possible legal action.
Stelco Inc., the Hamilton-based steelmaker owned by Cleveland-Cliffs, announced it will move forward with hundreds of layoffs despite an ultimatum from Industry Minister Mélanie Joly threatening legal action for breaching Investment Canada Act commitments. In a letter, president and general counsel Paul Simon contended that the ICA undertakings do not forbid layoffs or require a minimum workforce level over the five-year period.
He blamed external pressures, including 50 percent U.S. tariffs imposed under President Donald Trump, for the decision to idle the Hamilton Works finishing lines. The federal government had demanded a plan to preserve up to 500 jobs within five days, or risk enforcement. Stelco said the layoffs will be carried out over three weeks, with the possibility for affected employees to transfer to its Lake Erie plant, and called on Ottawa to tighten import restrictions on cold-rolled and coated steel. The company pledged continued dialogue with the government.
