Cleveland-Cliffs has announced that Stelco experienced its most robust performance during the third quarter of this year since being acquired by the U.S. corporation in 2024. Concurrently, a significant number of employees at the steelmaker’s facilities in Hamilton and Nanticoke, Ontario, are facing imminent job losses due to ongoing layoff notifications.
Lourenco Goncalves, the CEO of Cleveland-Cliffs, highlighted the strength of Stelco’s third-quarter performance, attributing it to substantial improvements in the Canadian hot-rolled market. Despite this positive development, Goncalves emphasized the necessity for additional actions by the Canadian government to address the overcapacity issues in the Canadian galvanized steel market.
Stelco Holdings Inc. had previously announced plans on September 28 to idle a section of its Hamilton plant to safeguard the company’s viability amidst challenges posed by U.S. tariffs impacting its sales. Union representatives disclosed that around 333 employees in Hamilton and up to 50 workers at the Lake Erie Works in Nanticoke are anticipated to be affected by the layoffs.
Goncalves reiterated his satisfaction with the increased profitability of Cleveland-Cliffs’s main revenue streams, crediting U.S. President Donald Trump’s trade policies for fostering an environment conducive to continued investments and expansion within local communities, despite challenges arising from tariffs affecting Stelco’s economic performance.
The CEO highlighted that current steel sales are occurring in the most favorable price environment witnessed in the past three years, which has been instrumental in supporting a thriving business model that prioritizes employee welfare, community investments, and national defense considerations. Goncalves underscored the pivotal role of the Canadian government’s tariff-rate quota system in the success of the hot-rolled steel sector.
Moreover, Goncalves reaffirmed Stelco’s commitment to maintaining the agreed employment levels following Cleveland-Cliffs’s acquisition, stressing that the layoffs are temporary measures awaiting resolution of trade negotiations between Canada and the U.S. He expressed readiness to engage in legal battles with the Canadian government to uphold the layoff plan if necessary.
Industry Minister Mélanie Joly emphasized the government’s exploration of legal avenues, including penalties under the Investment Canada Act, to ensure Cleveland-Cliffs fulfills its commitments regarding employment levels and operational obligations at Stelco. The minister indicated that potential actions could involve court-mandated compliance or divestment of the company’s Canadian assets.
Union representatives expressed concerns about the impact of the layoffs on workers’ morale and perceived inconsistencies in the messaging from Cleveland-Cliffs’s leadership. They called for accountability in fulfilling promises made during the acquisition of Stelco and urged Minister Joly to uphold regulatory standards under the Investment Canada Act.