Stelco Layoffs: Ottawa Gives Owner 15 Days to Save 500 Steel Jobs
Canada's industry minister gave Cleveland-Cliffs 15 days to reverse up to 500 layoffs at Stelco's Hamilton and Lake Erie steel plants or face legal action.
CanadaIn brief
- Industry Minister Mélanie Joly gave Stelco's US owner Cleveland-Cliffs 15 days on 22 October 2026 to reverse planned layoffs.
- Stelco plans to cut up to 500 jobs at its Hamilton and Lake Erie operations; the union expects 300 to 350 in Hamilton.
- When Cliffs bought Stelco in 2024 it promised to keep average unionized staffing at no less than 1,766.
- Ottawa says it could seek a court order, penalties or even a forced sale if the company does not comply.
| Country | Canada |
|---|---|
| Organization | Stelco (Cleveland-Cliffs) and Innovation, Science and Economic Development Canada |
| Official source | CP24 / The Canadian Press – Joly gives Stelco two weeks to reverse layoffs ✓ cp24.com |
The Canadian government has given the owner of Stelco 15 days to reverse plans to lay off up to 500 steelworkers in Ontario, or face possible legal action. Industry Minister Mélanie Joly set the deadline in a letter sent on 22 October 2026 to Stelco, which is owned by US steelmaker Cleveland-Cliffs.
Joly said the company is still moving ahead with the layoffs at its Hamilton and Lake Erie operations.
What is happening at Stelco
| Detail | What we know |
|---|---|
| Planned job cuts | Up to 500 |
| Plants affected | Hamilton Works and Lake Erie Works (Nanticoke) |
| Union estimate | 300 to 350 layoffs in Hamilton over about three weeks |
| First layoffs effective | 11 October 2026 |
| Lines idled | Cold-rolled and coated operations at Hamilton |
| Government deadline | 15 days from 22 October (early November) |
Stelco has indefinitely idled its cold-rolled and coated steel lines in Hamilton and is moving production to Lake Erie Works. The company blames US tariffs and trade disruption. It says demand for these products in its usual markets fell by nearly 25% in the second quarter of 2026 compared with its 2024 average.
The job promises at the centre of the dispute
When Cleveland-Cliffs bought Stelco in 2024, it signed legally binding commitments under the Investment Canada Act. In her second letter, Joly cited the job floors for the first time:
- Unionized workers: a yearly average of no fewer than 1,766
- Salaried staff: 603, equal to 90% of the earlier average
These floors are measured as annual averages and do not directly ban layoffs. Stelco says it is still in compliance and has asked Ottawa to relax some commitments, citing serious market disruption. Cleveland-Cliffs declined to comment on the letter.
What Ottawa could do next
Joly said the letter sets out the government's evidence ahead of a possible court case. Options include asking a court to force compliance, seeking penalties, or even ordering a sale of Stelco, which she said is "definitely on the table".
The fight comes as Canada's job market weakens. The country lost jobs in September and unemployment rose to 6.5%; see our September 2026 Canada jobs report.
What it means for job seekers
- Laid-off Stelco workers should apply for Employment Insurance right away. A temporary waiver of the one-week waiting period for tariff-hit workers was extended this year. Our EI guide explains the basics.
- Keep in touch with USW Local 1005 for recall news; the duration of the layoffs is not yet known.
- Skilled tradespeople such as millwrights and electricians can widen their search to construction, utilities and other manufacturers in the Hamilton–Niagara area.
- Watch the early-November deadline. What Ottawa does next may decide whether some of these jobs return.
Frequently asked questions
How many jobs is Stelco cutting?
Up to 500 at its Hamilton and Lake Erie facilities. United Steelworkers Local 1005 expects 300 to 350 layoffs in Hamilton.
Why is the Canadian government stepping in?
Cleveland-Cliffs made legally binding job commitments under the Investment Canada Act when it bought Stelco in 2024. Ottawa says the layoffs break those promises.
What happens after the 15-day deadline?
Mélanie Joly says Ottawa could go to court to force compliance, seek penalties or push for a sale of Stelco.
Why is Stelco laying off workers?
The company blames US tariffs and trade disruption, which cut demand for its cold-rolled and coated steel.
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