Cleveland-Cliffs pledges to restore Hamilton steel jobs
Cleveland-Cliffs confirms full compliance with its 34 Investment Canada Act commitments for Stelco, as CEO Lourenco Goncalves vows to recall 175 laid-off Hamilton workers by Christmas if a domestic sales plan succeeds, amid U.S.-Canada trade tensions.
Cleveland-Cliffs has confirmed full compliance with all 34 of its legally binding undertakings under the Investment Canada Act tied to its 2024 acquisition of Stelco. The company stated it has met or exceeded the required employment commitments for unionized and salaried workers at Stelco's Hamilton Works as of October 2024.
In a letter to government officials last week, the firm detailed its performance. It expects average annual employment of at least 1,879 full-time workers, exceeding the required 1,766. The commitment for salaried staff has also been surpassed.
| Commitment Type | Required Figure | Projected/Actual Figure |
|---|---|---|
| Full-time Workers | 1,766 | At least 1,879 |
| Salaried Workers | 603 | At least 627 |
The acquisition deal included a five-year pledge to maintain employment levels for unionized workers and most salaried employees. Lourenco Goncalves, CEO of Cleveland-Cliffs, asserted the company's adherence to these rules. "Stelco is in full compliance with all undertakings, and in several important areas we have gone beyond what we committed to do," Goncalves said.
Trade tensions trigger Stelco layoffs and workforce uncertainty
Despite this compliance, operations at Stelco have been idled and workers laid off following an escalation in the U.S.-Canada trade war in early September. Canada responded to U.S. measures by imposing tariffs of up to 50% on hundreds of American steel and aluminum products, keeping tensions high.
Cleveland-Cliffs cited these U.S. tariffs, weak demand for Canadian steel, and competition from imports as reasons for the production halt. On September 28, Stelco announced plans to lay off up to 500 workers at its Hamilton and Nanticoke, Ontario, steel mills.
United Steelworkers national director Marty Warren accused Cleveland-Cliffs of using Stelco workers as bargaining chips in the broader trade conflict.
Goncalves vows to restore Hamilton jobs before Christmas
CEO Lourenco Goncalves now plans to meet with government ministers to discuss resuming full employment. He has set a goal to recall all 175 temporarily laid-off workers at the Hamilton Works facility before December 25.
This recall is contingent on the success of a plan to boost sales of Canadian-made steel to domestic customers. Goncalves stated he hopes to recall all 175 workers before Christmas if his sales plan succeeds.
In broader trade policy, Goncalves has advocated for a 'Fortress North America' approach. This concept would lower tariffs between the U.S. and Canada while maintaining a strong external trade wall against other countries.
The company's strategy hinges on reviving domestic steel demand to bring its Hamilton workforce back before the holiday close.
