Ottawa Threatens Forced Asset Sale as Stelco Cuts 500 Jobs
Canada's Industry Minister warned Cleveland-Cliffs that its U.S. parent company risks being forced to sell Stelco's Canadian operations if it continues laying off steelworkers in Hamilton. The escalating battle reflects broader trade war pressures and foreign investment rules.
Industry Minister Mélanie Joly is issuing a fresh warning to Stelco's American owner, saying it must protect Canadian jobs or face the prospect of being forced to sell its assets in Canada. Speaking at the Canadian Club in Toronto on Friday, Joly took aim at Cleveland-Cliffs for supporting U.S. tariffs, describing it as "the elephant in the room," adding that they are directly harming its Canadian operations, while putting hundreds of jobs at risk at Stelco's Hamilton plant.
The warning comes just days after more layoff notices were handed out to unionized workers at Stelco's Hamilton plant as the company moves ahead with plans to idle its cold mill and coating departments. Last month, Cleveland-Cliffs announced it would shut down part of the Hamilton operation across the Hamilton and Lake Erie facilities, axing up to 500 jobs. At the time, the company cited low steel prices and tariffs imposed by U.S. President Donald Trump.
Ottawa maintains the decision violates commitments Cleveland-Cliffs made under the Investment Canada Act when it acquired Stelco in 2024, including a pledge to protect Canadian jobs. Speaking to reporters Wednesday, Joly said "everything is on the table," including financial penalties and a potential forced divestment of the company's Canadian assets.
Why this matters for foreign workers
This confrontation illustrates Canada's willingness to invoke foreign investment rules to protect domestic jobs and strategic assets. If you work in manufacturing or critical infrastructure, the government's intervention signals both protection against sudden closures and ongoing regulatory scrutiny of foreign-owned operations.
Sources
Independent app, not a government. General information, not advice. The official source:
