Joly warns Stelco owner protect jobs or risk forced sale of Canadian assets

Industry minister Mélanie Joly had another forceful warning on Friday to the U.S.-based owner of Stelco: protect jobs or the company could be forced to sell its Canadian assets.

Joly says Cleveland-Cliffs must uphold the job commitments it made when it bought the Ontario-based steelmaker.

The minister stopped short of explicitly saying Ottawa was prepared to take an ownership stake in Stelco.

Joly accused the American company of supporting U.S. tariffs that are damaging its own Canadian operations.

“Cleveland-Cliffs must uphold its commitments. Full stop. We will apply the full force of the law and every tool in the toolbox to ensure that this strategic capacity remains operational,” said Joly.

The warning comes after Stelco announced plans last month to lay off up to 500 workers across its Hamilton and Lake Erie facilities, citing the ongoing trade crisis, weak demand and continued import pressure.

“And they must keep the jobs in Canada, or face the prospect of having to sell their Canadian assets,” said Joly.

Joly said the federal government is prepared to provide financing or even take ownership stakes in companies to keep important industries and jobs in Canada.

“We must ensure that strategic production capabilities remain right here at home, and we will provide the financing. When I say ‘we,’ of course, the government will provide financing and even take equity positions to do that,” stressed Joly.

When asked how soon Ottawa expected to resolve the dispute over Stelco’s planned layoffs or pursue legal action, Joly said it was “a question of days.”

But the president of USW Local 1005 is afraid that this move will take time, which workers don’t have.

“But that process, [in] our experience could take years. Our members don’t have years. We’re still hoping that, you know, a trade deal is struck,” said Ron Wells.

Wells welcomes the move but says the federal government needs to take action immediately.

“We also feel that, you know, our workers who are being used in pawns, maybe they should get enhanced EI, and then the money recovered from the lawsuit against Cliffs could be paid back, that enhancement,” said Wells.

Joly later told reporters that Ottawa has hired lawyers to examine its legal options against Cleveland-Cliffs.

But the future of Stelco workers remains uncertain for now.