The Globe and Mail reports in its Wednesday edition that U.S. steelmaker Cleveland-Cliffs could face legal action from Ottawa for violating job commitments stemming from its 2024 acquisition of Stelco after announcing hundreds of layoffs in Canada on Monday. The Globe's Niall McGee writes that in 2024, the American company announced its intentions to buy Stelco for $3.4-billion. The federal government approved the transaction, but only after imposing a series of legally binding conditions on Cliffs. Those included Cliffs promising to maintain for five years at least the same number of unionized employees and the vast majority of non-unionized employees. Cliffs on Monday said it was laying off up to 500 workers at Stelco's Hamilton plant and its Lake Erie Works operation in Nanticoke, Ont. Some of the workers affected by the layoffs will be offered jobs at Lake Erie Works. Ron Wells, president of United Steelworkers Local 1005, is now pushing for Ottawa to hold Cliffs to its promise to maintain employment levels. Subrata Bhattacharjee, a lawyer at Borden Ladner, said Cleveland Cliffs will likely try to explain to Ottawa how the tariff situation is out of its control, and will have to be released from the undertaking.
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