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Canada’s Stelco to recall 175 workers after government pressure

Canada’s Stelco to recall 175 workers after government pressure

Summary

Stelco will recall all 175 workers laid off at its Hamilton plant on December 1 and pay them the wages they would have earned during the layoffs. The decision followed pressure from the Canadian government, which had threatened to seek a court order requiring Stelco’s U.S. owner, Cleveland-Cliffs, to sell the company.

Key Facts

  • Stelco said it reached agreements with enough customers to restart finishing operations in Hamilton.
  • The recalled workers will receive back pay at their standard wages for the layoff period.
  • Industry Minister Melanie Joly said she would seek a court order to force Cleveland-Cliffs to sell Stelco if management did not respond by the end of Friday.
  • Cleveland-Cliffs bought Stelco in 2024.
  • In late September, Cleveland-Cliffs announced plans to lay off as many as 500 workers at plants in Hamilton and Nanticoke, Ontario.
  • Cleveland-Cliffs cited weak demand and difficult market conditions for cold-rolled and coated steel products.
  • The company blamed U.S. President Donald Trump’s steel tariffs and competition from lower-priced foreign steel for hurting demand for Canadian steel.
  • Ottawa and the union said the planned layoffs breached commitments to keep the same number of Canadian unionized employees through 2029.
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