Cleveland-Cliffs CEO aims to recall 175 laid-off Stelco workers by Christmas

Cleveland-Cliffs Inc. CEO Lourenco Goncalves said Wednesday he hopes to bring back laid-off Stelco workers before Christmas if a plan to increase Canadian sales succeeds.

Employment and Sales Strategy

Goncalves stated the company is counting on increased purchases of Canadian-made steel, rather than tighter import restrictions, to restore jobs at its Ontario operations. "It will depend on Canadian customers buying Canadian steel, made by Stelco," Goncalves said in a statement to The Canadian Press. "If our plan works, my intention is to call back all the 175 workers before Christmas."

While an internal Stelco letter to employees on Sept. 28 stated that up to 500 workers at the Hamilton Works and Lake Erie Works operations could be affected by layoffs, Goncalves clarified Wednesday that only 175 workers have been laid off. Ron Wells, president of United Steelworkers Local 1005, confirmed that 175 workers have been laid off in Hamilton, noting that no layoffs have yet taken place at Lake Erie Works.

Regulatory and Political Disputes

Industry Minister Mélanie Joly has warned that Cleveland-Cliffs could be forced to sell Stelco if it fails to meet binding commitments made under the Investment Canada Act. Joly stated the company must provide a concrete plan and timeline for bringing employees back before she will agree to meet with Goncalves. "We need a real plan from them to show us they are working in good faith," Joly said. "The clock is ticking."

Goncalves accused Joly of discouraging foreign investment in Canada by publicly discussing potential buyers and criticizing business decisions. "If I knew — or even suspected — that I would be subjected to this type of treatment when I made a business decision within the boundaries of undertakings that I am in full compliance (with), I certainly would not have invested in Canada," he said.

Allegations and Tariffs

The dispute includes disagreements over U.S. tariffs. Goncalves has supported the tariffs, while Joly stated the federal government is consulting lawyers regarding remarks by Goncalves suggesting he purchased Stelco to protect U.S. operations from Canadian competition. Goncalves told CBC News on Tuesday, "I bought Stelco because I could not afford anymore having Stelco flooding the market here in the United States to the detriment of my own company."

Other officials have criticized the company's actions:

• Ron Wells (United Steelworkers Local 1005) accused Cleveland-Cliffs of using layoffs to pressure Ottawa into tightening restrictions on foreign steel imports.
• Liberal MP Lisa Hepfner accused Cleveland-Cliffs of buying Stelco to undermine Canadian operations.
• Ontario Economic Development Minister Vic Fedeli accused Cleveland-Cliffs of being "disingenuous" regarding their support for tariffs.

Future Outlook

Goncalves stated that Stelco will not be sold for at least the next year. "I will not talk to any buyers, real or imaginary, now or within the next calendar year," Goncalves said. He added that once the company demonstrates one year of higher production numbers and recalls all 175 workers, he would be "glad to sell the company, and only if I decide to do so by then."

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Sources

• bnnbloomberg.ca: Stelco: owner hopes to recall laid-off workers before Christmas
• globalnews.ca: Stelco owner hopes to recall laid-off steelworkers before Christmas | Globalnews.ca
• theglobeandmail.com: Cliffs could recall laid-off Stelco workers by Christmas depending on Canadian steel demand, CEO says - The Globe and Mail
• thespec.com: Goncalves muses about selling Stelco, says layoffs could end by Christmas
• ctvnews.ca: Stelco: owner hopes to recall laid-off workers before Christmas
• ipolitics.ca: Stelco owner hopes to recall laid-off steelworkers before Christmas - iPolitics

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.