Carney says Cleveland-Cliffs must honour Stelco commitments amid layoff dispute
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Prime Minister Mark Carney says it would be a mistake for Cleveland-Cliffs Inc. to fail to honour the commitments it made when it bought Stelco.
At a news conference in Montreal, he declined to comment on the possibility of forcing the U.S. steelmaker to sell Stelco, saying a legal process is underway.
Carney’s comments Thursday come as Industry Minister Mélanie Joly stepped up pressure on Stelco to recall laid-off workers.
In a new letter, Joly rejects the steelmaker’s latest compliance report as “far from satisfactory” and demands the immediate recall of laid-off workers before she will sit down with Cleveland-Cliffs chief executive Lourenco Goncalves.
The Ohio-based steelmaker acquired Stelco in 2024, agreeing to legally binding commitments under the Investment Canada Act, including to maintain employment levels for unionized workers and most salaried employees for five years.
Stelco announced on Sept. 28 that up to 500 workers could be affected by plans to idle finishing operations at Hamilton Works and reduce operations at its Lake Erie Works in Nanticoke, Ont., although Cleveland-Cliffs says there are currently 175 workers laid off.
The company cited U.S. tariffs, weak demand for Canadian steel and competition from imported steel products as reasons for the layoffs.
However, Goncalves said Wednesday he hopes to recall all 175 workers before Christmas if a plan to boost sales of Canadian-made steel to domestic customers succeeds.
This report by The Canadian Press was first published Oct. 29, 2026.