Cleveland-Cliffs reports that Stelco had its most robust third-quarter performance this year since being acquired by the U.S. firm in 2024. However, despite this positive development, a significant number of employees at Stelco’s facilities in Ontario are facing imminent job losses in Hamilton and Nanticoke. The layoff process began earlier in the month and is ongoing.
Lourenco Goncalves, CEO of Cleveland-Cliffs, highlighted the strength of Stelco’s performance in the third quarter, mentioning the significant improvement in the Canadian hot-rolled market. Goncalves emphasized the necessity for further action by the Canadian government to address the oversupply issue in the galvanized steel market in Canada.
Stelco Holdings Inc. announced plans to idle a section of its Hamilton plant to safeguard the company’s sustainability amid challenges posed by U.S. tariffs impacting its sales. Union representatives indicated that approximately 333 employees in Hamilton and up to 50 workers at the Lake Erie Works in Nanticoke are expected to be affected by the layoffs.
During an earnings call, Goncalves expressed satisfaction with the growth of Cleveland-Cliffs’s key profit drivers. He commended President Donald Trump’s trade policies for fostering an environment conducive to investments and domestic production expansion, despite Stelco attributing economic difficulties to tariffs.
Goncalves credited the success of the hot-rolled steel business to the Canadian government’s tariff-rate quota system, which restricts imported product volumes. He reiterated Stelco’s commitment to preserving employment levels as agreed upon during Cleveland-Cliffs’s acquisition of the company.
Amidst the layoffs, Goncalves emphasized the temporary nature of the measures, pending a resolution in trade negotiations between Canada and the U.S. He urged the government to take action to limit the importation of galvanized steel, indicating that such a move would enable the recall of the temporarily laid-off workers.
Regarding the potential legal actions by the Canadian government against Cleveland-Cliffs, Minister Mélanie Joly mentioned exploring various options under the Investment Canada Act, including penalties, compliance orders, or asset divestment requirements.
Union representatives expressed concerns over the ongoing layoffs, with workers feeling undervalued and questioning the disparity between Stelco’s reported profitability and the operational department closures. They emphasized the need for consistent enforcement of regulatory commitments to protect Canadian jobs and industries.