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Oct 15, 2026 2:10 PM - Connect Newsroom - Jasmine Singh with files from The Canadian Press

Stelco Faces Pressure Over 500 Job Cuts as Canada Issues Stern Warning

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Canada warns Cleveland-Cliffs of potential fines and forced asset sales over planned layoffs of 500 Stelco workers. (Photo: The Canadian Press)

Canada’s Industry Minister Mélanie Joly has warned U.S. steelmaker Cleveland-Cliffs of severe consequences if it proceeds with plans to lay off hundreds of workers at its Stelco operations in Ontario.

The dispute began after Stelco announced plans to cut approximately 500 jobs at its Hamilton and Nanticoke facilities. The company says the ongoing trade war with the United States has made it increasingly difficult to compete in the galvanized steel market.

However, Joly said the federal government could pursue legal action under Section 40 of the Investment Canada Act if Cleveland-Cliffs fails to honour the legally binding employment commitments it made when acquiring Stelco in 2024.

The company could face substantial fines or potentially be forced to sell its Canadian assets if a court finds that it has violated its obligations.

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