Canadian Government Calls for Concrete Plan on Jobs From Cleveland-Cliffs Before Meeting CEO

By Robb M. Stewart

OTTAWA--Canada's industry minister is demanding Cleveland-Cliffs immediately recall all workers at its Stelco operations who have been laid off or received lay-off notices as a precursor to meeting with Cliffs Chief Executive Lourenco Goncalves.

Melanie Joly in a letter to Stelco President Paul Simon, in which he proposed a meeting between the lawmaker and Goncalves, said she expects the steelmaker and its parent company to provide a "clear and credible plan for the re-engagement of those workers."

She said she is prepared to meet with Simon and Goncalves but that such a plan would form the basis for a discussion.

Canada's government has been critical of the layoffs at Stelco's Ontario operations and accused Cliffs of breaching undertakings made to secure approval for its roughly $2.4 billion acquisition of Stelco in 2024 around job numbers and advocacy for trade policy. Joly last week gave Cliffs 15 days to respond or risk fines and even a possible forced sale of Stelco.

Cliffs has said it performed an exhaustive review that confirmed it was in full compliance with 34 undertakings made to Ottawa, and that in several areas the performance of Stelco exceeded its commitments. Average annual employment is expected to be at least 1,879 full-time unionized employees, 113 above the required level, and salaried employment is expected to average at least 627 full-time positions compared with a required 603, Cliffs said.

The interim compliance report provided by Cliffs was "far from satisfactory," Joly said, and didn't alter her belief that Cliffs and Stelco aren't in compliance with undertakings under the Investment Canada Act.

"If you wish to persuade me that there has been compliance with your undertakings, I expect Stelco and Cleveland-Cliffs to address fully and directly each of the matters identified in my section 39 demand and to provide the underlying data, documents and other evidence necessary to substantiate their assertions," Joly said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

October 29, 2026 13:03 ET (17:03 GMT)