Stelco to Recall 175 Hamilton Workers Following Canadian Government Pressure

Canadian steelmaker Stelco has announced it will recall all 175 workers laid off at its Hamilton plant and provide retroactive pay, ending a weeks-long standoff between the company's U.S. owner, the Canadian government, and the workforce.

The decision arrived on Friday, shortly after Canada's Industry Minister Melanie Joly threatened to seek a court order to force Cleveland-Cliffs to sell Stelco if management did not respond by the end of the day.

In a statement released Friday, the company confirmed it had secured agreements with sufficient customers to restart finishing operations. Workers are scheduled to be recalled on December 1 and will receive back pay for the standard wages they would have earned during their layoff period.

Ron Wells, president of United Steelworkers Local 1005, praised the outcome, attributing the success to combined pressure from the union, the workers, and the government. During a news conference, Wells described the layoffs as "illegal" and "immoral," stating they should never have occurred.

Industry Minister Melanie Joly joined Wells, asserting that the result sends a clear message to investors that Canada is a country governed by the rule of law, regardless of an investor's financial standing. She added, "This fight was absolutely worth it."

Cleveland-Cliffs, which acquired Stelco in 2024, had announced in late September that up to 500 workers could be laid off at plants in Hamilton and Nanticoke, Ontario, citing weak demand and challenging market conditions for coated and cold-rolled steel products. The company blamed U.S. President Donald Trump's tariffs on Canadian steel and competition from cheaper foreign steel for eroding domestic demand.

Ottawa argued that these layoffs violated binding commitments made during the acquisition of Stelco, specifically the pledge to maintain the same number of Canadian unionized employees until 2029. Furthermore, the government and the union claimed that Cleveland-Cliffs CEO Lourenco Goncalves violated his commitment to advocate for policies benefiting both the Canadian and U.S. steel industries by publicly supporting Trump's steel tariffs, including those on Canada.

Cleveland-Cliffs noted in its statement that customers had committed to supporting Hamilton operations despite what it called a lack of federal government response to tariff response program shortfalls. The company did not provide specific details on the customer agreements or explain the shift in viability for restarting operations, and did not respond to requests for further comment.