Ottawa gives Stelco owner 15 days to address alleged violations or face legal action

OTTAWA — Ottawa 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 Ontario steelmaker two years ago or face potential legal action.

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

She also accuses Cleveland-Cliffs of advocating for U.S. tariffs on Canadian steel despite its commitment to support Canada’s steel industry, then using those same tariffs to justify layoffs.

Cleveland-Cliffs announced plans on Sept. 28 to lay off up to 500 workers at Stelco’s Hamilton Works and Lake Erie Works in Ontario, citing U.S. tariffs and challenging market conditions.