Stelco owner Cleveland-Cliffs denies breaching takeover terms, requests meeting with Joly

Cleveland-Cliffs says it is in full compliance with the terms of its 2024 purchase of Stelco, rejecting federal allegations that recent layoffs breached the Investment Canada Act.

The Ohio-based steelmaker delivered a compliance update to Industry Minister Mélanie Joly on Monday, stating it meets all 34 commitments tied to the acquisition.

The response follows a 15-day warning from Ottawa threatening legal action and potential forced divestment after Cleveland-Cliffs announced plans to lay off up to 500 workers across plants in Hamilton and Nanticoke.

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

The company maintains that its workforce levels exceed agreed-upon minimums. For the current reporting period, Stelco says it expects an annual average of 1,879 unionized full-time equivalent employees (113 above the required 1,766) and 627 salaried workers (topping the required 603).

Stelco says it requested a meeting on Oct. 23 with Joly and Cleveland-Cliffs Chairman and CEO Lourenco Goncalves to discuss recalling 175 temporarily laid-off Hamilton workers, but has not yet received a reply.

The company says it will update its compliance report after the reporting period closes on Oct. 31.

READ MORE: Cleveland-Cliffs says Stelco had its ‘strongest quarter,’ says feds need to do more to save jobs