Cleveland-Cliffs CEO, Lourenco Goncalves, has expressed readiness to challenge the Canadian government in court to defend Stelco’s decision to lay off numerous employees. Goncalves, in an interview on CBC’s Rosemary Barton Live, refuted the government’s allegation that Cleveland-Cliffs breached employment commitments outlined in the Investment Canada Act following its acquisition of Stelco in 2024.
According to Industry Minister Mélanie Joly, the purchase agreement mandated Cleveland-Cliffs to maintain the same number of unionized and a majority of non-unionized employees until 2029. Goncalves argued that the contract did not stipulate daily employment levels and indicated that the layoffs are temporary until a trade agreement is reached between Canada and the U.S.
Despite Stelco attributing its economic challenges to tariffs, Goncalves expressed support for U.S. tariffs on Canadian steel. The company emphasized external factors beyond its control, including the impact of President Donald Trump’s tariffs. Goncalves endorsed the tariffs, asserting they have revitalized the American steel industry.
In response to a government ultimatum to present a plan to save jobs or face legal action, Stelco maintained its intention to proceed with layoffs, dismissing the government’s claims of breaching commitments. Stelco worker Jordan Williams urged Goncalves to provide assurances for future operations in Hamilton, emphasizing the broader community impact. Union president Ron Wells confirmed ongoing layoffs in Hamilton and Nanticoke, expressing hope that the government holds Cleveland-Cliffs accountable for its actions.