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

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

Employment and Sales

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

While an internal Stelco letter to employees on Sept. 28 warned that up to 500 workers at the Hamilton Works and Lake Erie Works operations could be affected, 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, while no layoffs have yet taken place at Lake Erie Works.

Stelco has cited U.S. tariffs, weak demand for Canadian steel, and competition from imported steel products as reasons for the layoffs. Goncalves noted, "We believed that we could sell cold rolled and galvanized steel within the Canadian domestic market, and that part did not materialize and has not improved yet."

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 that 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 has criticized Joly, stating that she is 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 Future Outlook

Several parties have raised concerns regarding the company's motivations:

• Ron Wells, president of United Steelworkers Local 1005, accused Cleveland-Cliffs of using layoffs to pressure Ottawa into tightening restrictions on foreign steel imports, stating, "Obviously, we’re against using our members as pawns."
• Liberal MP Lisa Hepfner accused Cleveland-Cliffs of buying Stelco to undermine its Canadian operations and strengthen its U.S. business.
• Ontario Economic Development Minister Vic Fedeli accused Cleveland-Cliffs of being "disingenuous" regarding its support for U.S. tariffs.

Regarding the future of the company, Goncalves stated he will not talk to any buyers for at least the next calendar year. "Conversely, after we demonstrate one year of higher production numbers, and also have brought all the 175 workers back to their jobs, I will be glad to sell the company, and only if I decide to do so by then," Goncalves said.

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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
• ipolitics.ca: Stelco owner hopes to recall laid-off steelworkers before Christmas - iPolitics
• thespec.com: Goncalves muses about selling Stelco, says layoffs could end by Christmas

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