HAMILTON: Following intense pressure from the federal government and threats of legal action, Stelco’s parent company, Cleveland-Cliffs, has decided to recall 175 temporarily laid-off workers. The company has also agreed to provide full back pay for the period they were out of work. According to the company, all workers will return to their jobs on December 1.
The company stated that the decision was made after securing sufficient customer orders to restart operations at Stelco’s Hamilton plant. Stelco President Paul Simon thanked the workers for their patience and cooperation during this difficult period. Although it will take a few weeks for operations to return to full capacity, the company assured that employees will be compensated with an amount equivalent to their regular wages for the duration of the layoff.
Last September, the company laid off 175 workers, citing US tariffs and weakened market demand. However, Industry Minister Mélanie Joly stated that this violated the job security commitments made to the Canadian government when Cleveland-Cliffs acquired Stelco in 2024. The government had warned that if the terms of the agreement were not upheld, it would seek a court order forcing the divestiture of Stelco and initiate a Competition Bureau investigation against the company.
Speaking at a press conference in Hamilton, Minister Mélanie Joly said that in a country governed by the rule of law, everyone is obligated to honor agreements, adding that the fight for the workers had succeeded. United Steelworkers union leader Ron Wells remarked that the government’s strong intervention forced the company to reverse its decision, noting that getting their jobs back ahead of the holiday season brings immense relief to the workers.
