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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