Joly gives Stelco 15 days to honour federal commitments or face legal action

Industry Minister Melanie Joly has given Stelco 15 days to comply with its agreements with the Canadian government or face potential legal action. Joly issued the demand in a letter to Stelco’s general counsel on Thursday. In a statement posted on X, she said Cleveland-Cliffs, the U.S. company that acquired Stelco in 2024, made legally binding commitments under the Investment Canada Act that were key to the federal government approving the deal. Joly said the company is still taking steps to lay off 500 workers and has repeatedly failed to demonstrate that it is meeting its obligations despite being given multiple opportunities. “As we stand right now, the business is still taking steps to lay off 500 workers.

Despite being given multiple opportunities, Cleveland-Cliffs has repeatedly failed to demonstrate that they are compliant with their undertakings. That is unacceptable,” Joly wrote. She said the government expects companies investing in Canada to honour their commitments to Canadian workers and the federal government, regardless of changes in market conditions.

Under the Investment Canada Act, non-compliance could lead to financial penalties, a court order requiring the company to fulfil its commitments or the forced sale of its Canadian assets. Joly said she remains willing to work with Cleveland-Cliffs to find a solution but stressed that protecting Canadian jobs and the steel industry remains the government’s priority.

Prime Minister Mark Carney has also warned Stelco that it could face legal action if it fails to meet its employment commitments