Joly escalates lawsuit threat against Stelco owner Cleveland Cliffs

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeCommoditiesJoly escalates lawsuit threat against Stelco owner Cleveland CliffsAccording to Joly's letter, Cleveland Cliffs denied breaching its agreement through its layoffs or tariff advocacyMélanie Joly has given the steel company 15 days to remedy the situation or else she said her office may take legal action. Photo by HYUNGCHEOL PARK/PostmediaIndustry Minister Mélanie Joly has escalated her threats to take legal action against United States-based Cleveland Cliffs Inc., the parent company of Hamilton-based Stelco Holdings, which last month laid off hundreds of steelworkers.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIn a letter publicly released on Thursday, she said the company has violated the agreement it made with the federal government in 2024 to obtain approval under the Investment Canada Act for its $3.4-billion purchase of Stelco.This advertisement has not loaded yet, but your article continues below.In addition to agreeing to preserve the size of Stelco’s workforce, Joly said Cleveland Cliffs agreed to be a “strong advocate” for policies that benefit both the U.S. and Canadian steel sectors, including working to maintain Canada’s exemption from U.S. steel tariffs.She said Cleveland Cliffs chief executive Lourenco Goncalves did the exact opposite and advocated for tariffs on Canadian steel and for the failed review of the Canada-U.S.-Mexico Agreement (CUSMA) this summer, pointing to his testimony in January to the Congressional Steel Caucus of the U.S. Congress.“I am glad that there is a good chance that (CUSMA) will not survive the 2026 review. We need manufacturing in the United States. Not in Canada; not in Mexico,” Goncalves said, according to Joly’s letter.Neither Goncalves nor Cleveland Cliffs returned requests for comment.According to Joly’s letter, Cleveland Cliffs has denied breaching its agreement through either its layoffs or its advocacy for U.S. tariffs on Canadian steel.Through mid-October, approximately 175 union members at Stelco had received layoff notices, according to the letter.This advertisement has not loaded yet, but your article continues below.Joly also said Cleveland Cliffs has breached its commitment to spend approximately $2 million per year on charitable and community support for programs such as high school mentoring.She has given the company 15 days to remedy the situation or else she said her office may take legal action, including seeking an order forcing the company to comply with the agreement or “divest itself of control” of Stelco or face a penalty of not more than $10,000 per day, among other remedies.The letter comes one day after Prime Minister Mark Carney announced that the federal and Ontario governments would create a $5.22-billion fund to help steel mills upgrade their equipment. It also said it would step up protections against the dumping of unfairly subsidized foreign steel into Canada.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.