The CEO of Cleveland-Cliffs, the American company that owns Hamilton’s Stelco steelmaker, says he’s ready to challenge the Canadian government in court over Stelco’s plans to lay off hundreds of workers.
In an interview on CBC’s Rosemary Barton Live, Lourenco Goncalves rejected the government’s claim that his company is breaching employment commitments laid out under the Investment Canada Act.
Industry Minister Mélanie Joly stated last week that when Cleveland-Cliffs acquired Stelco in 2024, they agreed to “undertakings to continue to employ at least the same number of unionized employees and the vast majority of non-unionized employees as were employed when the transaction was announced” through 2029.
“There’s no clause in my contract requiring me to maintain a specific level of employment every single day for five years,” Goncalves mentioned on Sunday. “If that had been a requirement from the Canadian government, I wouldn’t have accepted.”
He reiterated that these layoffs are only temporary until trade agreements between Canada and the U. S. are reached, asserting that jobs will be brought back afterward.
Additionally, he expressed his willingness to sell the company and voiced support for U. S. tariffs on Canadian steel, even though Stelco points to these tariffs as a major reason for their financial difficulties.
WATCH | Goncalves says he’s open to selling Stelco:
Stelco owner open to selling company amid fight with Ottawa over layoffs
Lourenco Goncalves, CEO of parent company Cleveland-Cliffs, speaks with CBC’s Rosemary Barton following his company’s official response regarding legal threats from Ottawa related to layoffs at their Hamilton plant. In a letter obtained by , Stelco maintains it isn’t violating any employment commitments.
Canadian Government’s Ultimatum
Last week, Joly issued an ultimatum: provide a plan for saving up to 500 jobs affected at the Hamilton plant or face possible legal consequences.
Prime Minister Mark Carney also commented last week that Ottawa will “use all powers that we have” against Cleveland-Cliffs as they pursue action against the Ohio-based firm “to the fullest extent of the law.”
In response to Joly’s statement, Stelco Inc. claimed in a letter that it will go ahead with its layoffs and labeled the government’s interpretation as “false.”
The company highlighted that “Stelco’s situation stems from factors beyond its control,” pointing out issues caused by U. S. President Donald Trump’s hefty tariffs of 50 percent.
However, Goncalves stated on Sunday he backs steel tariffs directed at Canada.
“I’m supportive of tariffs against all nations dumping steel into America,” he declared, adding that Section 232 tariffs have revitalized “the American steel industry.”
A drone photograph shows Stelco Hamilton Works steel mill owned by Cleveland-Cliffs in Hamilton last month. (Carlos Osorio/Reuters)
“I’m totally behind Section 232. There’s no doubt about it.”
When asked if he’d think about selling Stelco, Goncalves replied, “For a good offer, yes,” but insisted he believes the company can still be “a good citizen in Canada.”
Previously speaking with , he mentioned he would not have purchased Stelco if he’d known trade relations between Canada and America would deteriorate like this.
Layoffs Have Started
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Jordan Williams, an employee who got laid off last week from Stelco, has urged Goncalves for a written reply addressing workers’ concerns along with a “credible” future plan for Hamilton’s cold-rolled and coated steel operations.
“What steps will you take t o protect jobs , support our families , and provide a path back t o work ? ” he said i n statements sent t o O ntario C hronicle S unday. “These layoffs reach beyond t h e p l ant gates and into businesses & neighborhoods depending on H amilton industry. ” p>
Ron W el ls , president o f U nited S teelworkers Local 1005 , representing S telc o workers i n H amilton , told O ntario C hronicle last week t hat layoffs are happening now & expected t o continue over three weeks. p>
He anticipates around 300 t o 350 layoffs i n H amilton & more at S telc o’s Lake E rie W orks i n Nanticoke , O nt. p>
Wells mentioned earlier t hat Gon cal ves , who has previously shown support f or T rump & his tariffs , seems eager t o make it look like T rump’s tariffs are effective ahead o f midterm elections i n th e U. S. p>
“I hope basically th e federal g overnment makes an example out of them,” Wells said. “We just want t o ensure they … follow through w ith it.” p>
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