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Canada’s Industry Minister Joly warns Cleveland-Cliffs it may have to sell assets
Canada’s Industry Minister Melanie Joly said Cleveland-Cliffs may have to sell its Canadian assets over plans to lay off up to 500 employees at Stelco in Ontario. Joly called on the company to honor the employment commitments it made when it acquired Stelco in 2024.
Canada’s Industry Minister Melanie Joly said US-based Cleveland-Cliffs may have to sell its Canadian assets over planned layoffs at Ontario-based Stelco.
Speaking at the Canadian Club in Toronto, Joly said Stelco planned to lay off up to 500 employees. The minister said Cleveland-Cliffs must fulfill the employment commitments it made when it acquired Stelco in 2024.
Joly said, "They must protect jobs in Canada; otherwise, they face the possibility of having to sell their assets in Canada."
Canada raises the possibility of legal action
The minister’s remarks followed an earlier warning that the Canadian government could take legal action over the planned layoffs. Speaking to reporters after her address, Joly said, "Over the weekend, we hired the best lawyers in the city."
The Canadian government said Cleveland-Cliffs’ acquisition of Stelco was approved in 2024 under the Investment Canada Act and that the company committed to preserving employment during the process.
Cleveland-Cliffs cites tariffs as justification
Cleveland-Cliffs Chief Executive Officer Lourenco Goncalves criticized Ottawa’s approach and accused the Canadian government of "bullying and harassing" the company.
Goncalves argued that the layoffs would be temporary and said the plan had become necessary because of tariffs imposed on Canada. He said the tariffs were introduced by the administration of U.S. President Donald Trump.
Joly said the government aims to protect Canadian workers and ensure that foreign investors fulfill their commitments. The minister said, "Of course, we show foreign companies that we are open for business. But if you invest in our country, you must honor your commitments."
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