Joly says Stelco must immediately recall laid-off workers in new letter

Industry Minister Mélanie Joly says she is prepared to sit down with Stelco representatives on the condition that the company immediately recalls laid-off workers. In a letter dated Oct. 29, obtained by Global News and addressed to Stelco president Paul Simon, Joly said she expects a “concrete and credible plan for re-engagement with these workers.”

Stelco began issuing layoff notices to about 500 employees in early October after announcing plans to scale back operations at its Hamilton plant. The company says the laid-off workers in Hamilton will be offered jobs at its Lake Erie facility. The union representing Stelco workers told Global News that only 40 jobs have been offered to affected employees.

In a letter sent last week, Joly warned Stelco that if it did not reverse the layoffs within 15 days, the federal government would launch legal action. That action could ultimately force parent company Cleveland-Cliffs to divest the Canadian steelmaker.

Cleveland-Cliffs has maintained that one reason for the layoffs is the 50 per cent U.S. tariff on aluminium and steel, which the company’s leadership has publicly supported. The company has also argued that it has not breached its agreement with the federal government and “should not be responsible for impacts of external factors beyond its control.”

Speaking to reporters Thursday, Joly said Cleveland-Cliffs and its CEO, Lourenco Goncalves, have actively supported the U.S. tariffs and must “face the consequences” those tariffs have on the Canadian market. She said the Stelco president had undertaken to keep 100 per cent of the jobs and to advocate for tariff-free access for Canadian steel to the U.S., but “he failed to do that.”

Joly said she reviewed an interim compliance report Stelco provided on Oct. 26 and found it “far from satisfactory.” In her latest letter, she said the report did not change her belief that Stelco and Cleveland-Cliffs are not complying with their commitments under the Investment Canada Act, as set out in her Oct. 22 demand under section 39. She expects both companies to address her demands “fully and directly” and provide the underlying data, documents and other evidence needed to support their assertions.