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Stelco recalling 175 laid-off workers at Hamilton steel plant

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Screenshot of Stelco recalling 175 laid-off workers at Hamilton steel plant

Stelco will bring 175 workers back to its Hamilton steel plant by Dec. 1 and retroactively compensate them for the period they were laid off, reversing part of a planned workforce reduction announced by its U.S. parent, Cleveland-Cliffs. In September, the company said it could lay off as many as 500 employees while idling some steel production. It blamed U.S. tariffs, weak demand for Canadian steel and competition from imports. Stelco says customers have now agreed to support its Hamilton finishing operations, though it also criticized the federal government for not addressing gaps in its tariff-response program and the influx of imported galvanized steel.

The recall follows a dispute with Ottawa over commitments Cleveland-Cliffs made when it bought Stelco in 2024. The federal government says the company promised to maintain unionized staffing at 2024 levels through 2029, and Industry Minister Mélanie Joly warned that layoffs could breach those obligations. Before Stelco announced the recall, Joly said she was prepared to seek a court order requiring Cleveland-Cliffs to sell the Hamilton plant if the company did not respond by the end of the day. She has also asked the Competition Bureau to investigate the acquisition after CEO Lourenco Goncalves said he bought Stelco to prevent it from competing against his U.S. business. Joly called the remark a serious admission and raised concerns about possible violations of competition law.

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