What’s the Latest: Stelco to recall 175 laid-off workers in Hamilton, Ont. on Dec. 1
Stelco will recall 175 temporarily laid-off workers as it plans to restart its Hamilton, Ontario, finishing operations on December 1 due to increased customer demand. The company will ensure that all affected employees receive retroactive wages for the period of their temporary layoff.
Cleveland-Cliffs Inc. announced plans to recall all temporarily laid-off workers due to increased customer demand for steel, with operations set to resume on December 1. The company stated that the affected employees will receive standard wages retroactively for the duration of their layoff.
Stelco plans to recall 175 temporarily laid-off workers in Hamilton on December 1, citing increased customer demand as the reason for the operational restart. Meanwhile, Industry Minister Mélanie Joly has warned Cleveland-Cliffs Inc. that it may face legal action or be forced to divest Stelco if it fails to comply with previously agreed employment guarantees.
What remains unclear — It is not specified how Cleveland-Cliffs plans to address the federal government’s concerns regarding alleged violations of its commitments.
Stelco to recall 175 laid-off workers in Hamilton, Ontario, from December 1
Stelco is set to recall 175 temporarily laid-off workers as the company plans to restart its finishing operations in Hamilton, Ontario, on December 1. The decision follows an increase in customer demand, according to Stelco, which expressed gratitude towards its customers and employees for their patience during this challenging period.
Paul Simon, Stelco’s president, stated, “I would like to thank our valued customers for the faith they have placed in us, and our workers for their patience and resilience.” The recall comes after parent company Cleveland-Cliffs Inc. faced backlash from the federal government over the layoffs announced in September, which Industry Minister Mélanie Joly argued were contrary to the conditions set during the sale approval process.
Cleveland-Cliffs attributed the layoffs to U.S. tariffs, reduced demand for Canadian steel, and competition from imported products. However, following negotiations resulting in agreements with enough customers, the company is repositioning to recall all laid-off workers.
The restart of operations will take several weeks, during which time all affected employees will receive retroactive standard wages for the duration of their layoff. The layoffs coincided with Cleveland-Cliffs’ acquisition of Stelco in 2024, which was conditional upon government approval under the Investment Canada Act.
According to Joly, Cleveland-Cliffs was warned last month to rectify alleged breaches of commitments related to employment guarantees. The government is also consulting legal counsel regarding comments from CEO Lourenco Goncalves, who implied the acquisition was intended to shield U.S. operations from Canadian competition. Joly cautioned that failure to meet these commitments could prompt the federal government to compel the sale of Stelco.
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