Stelco has reportedly pushed back on accusations it breached its agreement with the federal government, saying they are “false,” and it “stands ready to protect its interests.”
This comes as Stelco begins laying off hundreds of workers, and faces threats of legal action from the federal government if those jobs are not preserved.
The Ontario-based steel manufacturer sent a letter responding to Industry Minister Melanie Joly after she sent a letter to Cleveland-Cliffs, the U.S.-based company which acquired Stelco in 2024. She also gave the company five days to respond.
Cleveland-Cliffs told Global News it sent a letter in response to Joly’s office on Oct. 9, although the response was not initially shared publicly.
Stelco’s letter to Joly, which was written by the company’s president and general counsel, Paul Simon, was shared with Global News Monday via a source who asked not to be named.
“Through our regular contact, the government has had significant advance notice of the impact these unprecedented market conditions have had on our business, and in more recent communications dating back to July 2026,” the letter said.
“Our early September meetings with several senior government officials, including representatives from your office, led Stelco to believe that the government understood the market realities confronting Stelco’s Hamilton Works finishing lines.”
Stelco, like Algoma and other Canadian steel manufacturers have been hit hard by U.S. tariffs of 50 per cent on Canadian steel imports, which led to a steep decline in sales to U.S. customers. The company said these market conditions have forced it to layoff up to 500 workers.
Joly responded on social media on Oct. 10 after reportedly receiving the letter from Stelco.
“The Government of Canada continues to expect Stelco to meet its legally binding commitments to employees. These commitments were agreed upon as undertakings under the Investment Canada Act and do not cease to apply because of changing business strategy or market conditions,” said Joly in the statement.
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“As our legal team reviews the Stelco letter, all options are on the table.”
Canada gave U.S.-based Cleveland-Cliffs the go-ahead to purchase Stelco back in 2024 under the Investment Canada Act (ICA), which regulates foreign takeovers.
Speaking in the letter to Stelco last week, Joly said Canada’s approval of the deal was contingent on the new owner maintaining the number of union jobs and the majority of non-union positions.
Those conditions don’t expire just because “business strategy or market conditions have changed,” she added.
“This is particularly relevant here, where Cleveland-Cliffs has cited trade disruptions as affecting its operations at Hamilton Works, notwithstanding its chief executive officer’s public support for Section 232 tariff measures,” Joly said.
Stelco pushed back on Joly’s accusations in its letter, and said it “remains in compliance” with the undertakings in the agreement from 2024.
“Stelco submitted its annual report confirming its compliance with the employment undertakings in November 2025. That report highlighted that Stelco was facing significant challenges due to the unforeseen consequences stemming from unprecedented U.S. tariffs and Canada’s failure to advance an effective ‘Fortress North America’ trade regime,” the letter said.
“Your representation that Stelco’s planned layoffs cause it to breach its undertakings is false as the undertakings do not stipulate a commitment to avoid layoffs.”
When the layoffs were first announced last month, Prime Minister Mark Carney said the company “betrayed” Canadian workers and insisted “there’s money on the table” to keep employees on the job.
In an exclusive interview with Global News from Sept. 30, Lourenco Goncalves, the chairman and CEO of Cleveland-Cliffs, said the company’s decision was purely market-driven and that financial incentives could not fix the fundamental issues.
“I’m not shutting down, I’m not dismantling,” Goncalves said during a 10-minute phone call. “There’s no market in Canada for the amount of galvanized steel we produce in Canada. We need to export… to the United States.”
“Until we reestablish that, there’s nothing we can do, nothing.”
The union representing the roughly 500 steel workers facing potential layoffs, USW Local 1005, said it was not consulted nor did it have an opportunity to review those undertakings in the ICA.
“We were assured by both Cleveland Cliff’s and the Federal Government that bargaining unit employment levels would remain the same for 5 years. In other words no layoffs,” said the union’s president Ron Wells in a statement.
“Although we weren’t privileged to the signed agreement between Cliff’s and the Government, the response reeks of desperation as the original explanation of Stelco being victims of Trump’s steel tariffs wasn’t flying.”
Stelco, in the letter to Joly, denied wrongdoing, and based on the information presented to the federal government throughout the trade war, and the government’s own guidelines, the company said:
“In a situation such as this, Stelco should not be responsible for any non-compliance with its undertakings. Stelco stands ready to protect its interests consistent with the Investment Canada Act and its guidelines.”
Global News sent requests for comment to Stelco and Cleveland-Cliffs, but neither responded by publication.
– With files from Global News’ Colin D’Mello and The Canadian Press
Sell Stelco to Canadians, screw the U.S.A. and their tariff economy.
Critical industries like this should get nationalized, and if the corrupt old grifters in charge of Stelco don’t like it. Well. They shouldn’t have pushed for the tariffs that are apparently making business so unprofitable. While we’re at it, let’s start nationalizing other critical infrastructure too, particularly that owned by American companies. Make them feel the pain of the trade war they started, making our nation more secure, all while enriching the whole country.
@ Roy DePape – The better message is “A deal’s a deal. If you don’t keep your word we will sue.”
Great message to send to business leaders “come invest and build your company in Canada, but if you start losing money and try to leave, we will steal your company”
This band of incompetents cant run a country and they cant run a business. Look at canada post
Ben
October 13, 2026 at 12:11 pm
@Anonymous 1107am. With respect, concerns about Canadian jobs are valid but accepting any trade agreement with the US is not the answer. We have to protect access to the US market, yes. We also need to protect our manufacturing base, and that means we need to think beyond the immediate crisis and not panic. I do know that it’s likely that when Trump leaves the terms of any deal on offer might not change. But I have confidence in our political leaders, including Carney, former PM Harper, and the premiers that we made the correct decision to walk away at this time. I’m open to changing my mind but haven’t seen evidence that any deal is better than no deal.
Ben are you that stoopid? Really? Trump is not just gonna leave. This is far from over. Trump will leave a huge, blood filled stain behind. He gets turfed and there will be bloodshed. It’s his trade mark. He gets denied, innocent people die somewhere. He gets rebuffed or told no, innocent children suffer a fait no one should by his bombs.
Time for Ben and other bots to f*ck off.
I swear I read somewhere we are gonna use chinese steel nowadays … we should not be CanaDUH …. butt the republic of Chink Cuntry of of the communist party!!
You can take that to the bank JACK!!!
Carney doing a great job. Over 100,000 jobs lost in August/September and now more in October. Elbows Up has been a foolish approach.
Zero job losses in Alberta. All good if they are in Elbows Up Ontario and Quebec.
Ben, what exactly did Harper say? Are you just name dropping him for other reasons.
@Anonymous 1107am. With respect, concerns about Canadian jobs are valid but accepting any trade agreement with the US is not the answer. We have to protect access to the US market, yes. We also need to protect our manufacturing base, and that means we need to think beyond the immediate crisis and not panic. I do know that it’s likely that when Trump leaves the terms of any deal on offer might not change. But I have confidence in our political leaders, including Carney, former PM Harper, and the premiers that we made the correct decision to walk away at this time. I’m open to changing my mind but haven’t seen evidence that any deal is better than no deal.
Don’t worry cunada, you can always make everything of wood like the pre-metal days, you got lots of trees!
Out here in the West, we just elect the Opposition party…for all you folks in Ontario and Quebec who voted Liberal and have now lost your job, that’s your karma for voting Liberal since 2015…
Welcome to liberal Canada.
@Ben you say a deal would have eroded our manufacturing base well that’s happening now fast because if we cannot sell our products then companies will close and Canadians will lose their jobs. No company will come to Canada if they are expected to keep employees when they cannot sell their products it makes no economic sense.
This is just stupid. How can a company keep all employees when they cannot sell their products also where is the economic sense of Carney giving out taxpayer money to a company to keep all employees when there is no work to do.This is all because Carney cannot get a deal with Trump. Canadians and companies have to pay the price for this government’s incompetence. This is only the beginning and it looks like the only strategy Carney has is to keep paying out money to bribe companies to keep employees and that will fail badly.
Carney and Joly have to present a tough image to Canadians. Stelco probably is legally right but the liberals just accept market conditions then they might face backlash from the union from not doing more to negotiate with Trump
In the end Carney isn’t capable of getting a deal. He prefers to go “Elbows Up” and then Canadians lose jobs and livelihoods.
Ben, all hyperbole since we don’t know for sure what was in that deal.
There were mutiple reasons why we didn’t accept the flawed trade deal that Trump offered. Firstly, we must consider the long term cost of concessions that were asked. These would have eroded our manufacturing base over time. Secondly, our soverignty. The deal on offer would have severely impaired our ability to make independent economic decisions. Thirdly, the US is unpredictable and likely would not honour the trade deal. Just like they broke the previous trade agreement, they can break this one.
We all need to stand with Stelco! Everyone needs to push back on Ottawa. They are failing everyone and threatening legal action when called out! Maybe if we threaten to tear down Ottawa and their little empire they have forged in Canadian blood and poverty. I am sick to death of these Liberals and Carney! Just like frigging Trump without a military! TIME FOR AN ELECTION!!
We are not traitors when we demand results from a 12 year Liberal government.
cull the magat traitors
The results of Carney walking away from a deal simply because he tried at the last minute to sneak Chinese EV’s into the deal and the US said no way, now we are beginning to see the results of that stupidity and arrogance with 100,000 jobs lost in just 2 months and Stelco’s 350 to 500 being laid off. Unfortunately we are only seeing the beginning and there will be many more jobs lost due to Carney’s loyalty to the CCP and not to Canadians.
Ask yourself why there is a high tariff on steel going into the US from Canada. Is it because Carney is going to allow Chinese steel to flood into Canada and then be shipped as Canadian steel down to the USA. After all he is going to allow Chinese steel to be used in all fast track projects in Canada which gives the Chinese an avenue to send their steel in large quantities into Canada.
@MSGH No matter how much you may wish it, we do not (yet) live in a communist dictatorship where government seizes private businesses.
The incompetence of Joly and Carney is on display in the debacle. How can a government dictate to a private company that they must employ x number of employees and no matter what happens they must continue to employ that number of employees in perpetuity. That only happens in communist countries where companies are run by the government. Apparently there was no such condition in any contract they may have signed. The CEO said they have not taken any public money and will not.
The only thing the Liberals achieved in 11 years is free tampons in men’s washrooms for everyone that’s the pinnacle of their achievements.
Seize the plant and sell it to someone who will use it. The plant produces galvanized metal of which there is no market. Who would purchase it?
Perhaps Ottawa should seize the factory and sell it to a company that will use it.
The company sends letter formally and privately to the government, and Joly communicates threateningly through social media. I wonder who is more serious? 🤔
Total fail by Clowney
Talk about Liberal dictatorship. They want to use Chinese steel in the gas plant in BC. They walk away from an agreed upon trade deal with the USA. Then when Stelco decides enough is enough from this Liberal government the Liberals take Stelco to court for closing down their plant. This government needs to go.
When are Canadians going to wake up and see how badly the Liberals are failing?
“…..without health care, high gas/food prices, wars, ICE on your doorstep, etc etc. ”
This totally sounds like canada in January. Just saying
Colin
You probably know that you get real and unbiased news from CBC and CTV.
Keep watching
TDS is Canada’s official foreign trade policy. It explains everything that’s gone wrong with this country. We got boomers retired sitting in their rocking chairs watching 24 hour news cycle on repeat. TRUMP TRUMP TRUMP TRUMP TRUMP… they support every idiotic policy and vote based on hate of 1 man and their emotions rather than with common sense logic. Brainwashing and cognitive dissonance at its finest.
Here is novel idea. Why not use Canadian steel for building LNG plant in BC instead of Chinese what Carney agreed
The Federal Liberals have been doing a terrible job since 2015 with the idiot part time drama teacher Justin Trudeau in charge; making enemies world wide, including with the USA. It’s the same liberal government today with a different face on it, Carneys……Have things gotten any better in Canada? Nope. However a lot of things have gotten worse.
Dear Ontario people. You voted for this sh$tty government. I hope you actually have 30% unemployment. The west hates you.
Hilarious how the morons on this thread call true Canadians ‘bootlickers’ when it is they, themselves, who are the actual Bootlicking MAGAts!
@ Anonymous October 12, 2026 at 5:33 pm. Lots of countries are doing fine. India grew at 7.8%. Job creation is up in Vietnam. Even Mexico is doing better than Clownada. Maybe take your nose out of Carney’s bunghole and smell reality
Take the greedy American users to court! I’m am so tired of Americans screwing over every one! They are a bunch of thieves and liars! The get theirs and then back out of the deal!!
Can’t trust an American!!
I find funny some commenters here think of you don’t bootlick Carney you are a MAGA traitor. It was the Liberals that have betrayed Canadians since 2015.
MAGAt traitors posting and displaying their total lack of brain matter once again, lol!
Carnhole and his swallowers ya can’t fix stupid
Interesting how Carney thinks Stelco should keep their promises but yet he hasn’t kept his promises to Canadians. Total hypocrisy.
What pithy excuse will Carney give now shout these recent job losses at Stelco or the 100,000 lost jobs in August and September. We expect results not speeches or platitudes.
Those who are attacking Carney, give your head a shake. You think ANY LEADER IN ANY COUNTRY is doing better given the orange tyrant that now considers Canada an enemy? Don’t like Carney, go live in the US without health care, high gas/food prices, wars, ICE on your doorstep, etc etc. Even at our worse times we are 100% better than the people in the US.
It doesn’t matter what Stelco believed, what is of import is that it promised to maintain the level of jobs and it has not.
At this point I think PP could have done better than Carney. Not sure it could be any worse than where Canada is right now.
From now on there should not be US owned companies in Canada. Another contract signed in pencil I guess. Typical of the US, money first and not the people.
It will be interesting listening to Carney and Joly trying to wriggle their way out of this one. No Canadian asset should ever have been sold to foreign investors once you do you lose complete control. Now the Liberals think some company that has a shrinking market will pay employees just to sit around, that’s Liberal ideology at its best just keep throwing money at a lost cause ” The budget will balance itself” right.
Carney has been a total disaster so far as PM. No positive relics in over 18 months.
I don’t like Carney or PP, but Carney has been a total disappointment as PM so far. Canada lost over 100,000 jobs the last 2 months, now more job losses at Stelco and who is next?
Another bullsh_t mess ‘courtesy’ of the orange guy’s bullsh_t tarrifs.
Maybe Carney can cut all the punitive taxes facing Stelco and other heavy industries. The industrial carbon tax is very draconian and adds to bottom line manufacturing costs.
Businesses dont operate like a government here in Canada, they have to make money, not just spend money!
Joly and Carney are a joke who dont know the law! Spew off but accomplish very little!
How is Elbows Up working out now? Hilarious
I thought Lard Ford and Clowney were elected to protect Ontario jobs. They are doing a horrible job no doubt.
Push back all they want, they broke a legal & binding contractual agreement with the Fed govt!
Carney makes promises and doesn’t deliver. Just like he said he would lower grocery prices My Thanksgiving dinner was more expensive this year than last year.
Joly has no jurisdiction on this. Didn’t she threaten Stellantis also of course with no follow up. All talk and no action is the Carney Liberals.
MAGA traitors is against Canadians workers and back their MAGA overlord
I blame Carney. He still hasn’t delivered the deal he promised back in the 2025 General Election. He said it would be done by end of July 2025.
There were workforce size conditions attached to the sale 2 years ago. Cleveland-Cliffs supported Trump’s steel tariffs and are now trying to use the change in market conditions as an excuse for the layoffs. The last time this happened it was settled out of court.
This is most definitely not on the LIberals no matter what commenters from who knows where say.
This is on the Libs. They approved this sale because just two years ago they AND Carney gave no consideration to our resource and manufacturing sectors. Their pro “carbon pricing” mindset made then think that an econony can survive on jobs at Dollorama or Shoppers Drugmart, and a whole lot of wishful thinking and pixie dust.
The LPC could not care less about laws
They are found guilty of violating them by the courts on a regular basis