Cleveland-Cliffs has reported that Stelco had its most robust performance in the third quarter of this year since being acquired by the U.S. company in 2024. Despite this success, there have been ongoing layoffs affecting hundreds of employees in Hamilton and Nanticoke, Ontario.
CEO Lourenco Goncalves mentioned that the third quarter was the strongest for Stelco since the acquisition, with notable improvements in the Canadian hot-rolled market. However, Goncalves highlighted the oversupply of galvanized steel in Canada, urging the Canadian government to address this issue.
Stelco Holdings Inc. announced plans to idle part of its Hamilton plant to secure the company’s survival amidst challenges from U.S. tariffs impacting sales. Layoffs are expected, with 333 in Hamilton and up to 50 at Lake Erie Works in Nanticoke, according to union representatives.
During an earnings call, Goncalves praised President Donald Trump’s trade policies for creating conditions conducive to business growth and domestic production. He emphasized the positive impact of the tariff-rate quota system on the Canadian market.
The federal government stipulated that Cleveland-Cliffs must maintain employment levels as of 2024 through 2029. Minister Mélanie Joly emphasized the importance of honoring commitments, stating that business decisions should not override these obligations.
Goncalves reiterated that the layoffs are temporary and dependent on trade negotiations between Canada and the U.S. He emphasized the need for government intervention to restrict galvanized steel imports, enabling the rehiring of laid-off workers.
Amidst the layoffs, union representatives expressed concerns over worker morale and the perceived contradiction in Goncalves’s messaging. They called for Minister Joly to enforce the Investment Canada Act, emphasizing the need for accountability and fairness in business practices.