Joly, feds give Stelco owner 15 days to address alleged violations or face legal action

The federal government is giving the U.S. owner of Stelco Inc. a 15-day deadline to address alleged violations of binding commitments it made when it purchased the Hamilton-based steelmaker two years ago, or face potential legal action.

In an 11-page letter issued Thursday, Industry Minister Mélanie Joly accuses Cleveland-Cliffs of failing to honour six binding commitments made when it acquired Stelco.

The letter discloses employment commitments the Ohio-based company agreed to in 2024, including to maintain an annual average of at least 1,766 full-time-equivalent unionized workers and 603 full-time-equivalent salaried workers.

Here is my statement on Stelco: https://t.co/OSZ0q4FAZJ

— Mélanie Joly (@melaniejoly) October 22, 2026

Cleveland-Cliffs announced plans on Sept. 28 to lay off up to 500 workers at Stelco’s Hamilton Works and Lake Erie Works. It has cited challenging market conditions and U.S. tariffs for the layoffs.

Joly says the company must address its alleged violations, prove it has not broken its commitments or explain why it has failed to meet them.

If Cleveland-Cliffs fails to comply, she says the federal government may apply to a superior court for remedies, including an order requiring it to divest control of Stelco.

The MP for Hamilton West—Ancaster—Dundas said Thursday that he welcomes Joly’s enforcement action against Cleveland-Cliffs over the Stelco layoffs.

“It appears that the American owners of Stelco are sacrificing Canadian workers and the viability of their Canadian operations to artificially boost profitability at their U.S. mills while supporting Donald Trump’s illegal and unjustified trade war against Canada — in violation of their legal obligations under the Investment Canada Act,” said John-Paul Danko.

– With files from The Canadian Press