The fight over Stelco's Hamilton steel plant escalated on Sunday, with the American owner saying he would consider selling the company and is ready to take the Canadian government to court.
Lourenco Goncalves, chief executive of Stelco's parent company Cleveland-Cliffs, told CBC's Rosemary Barton that he supports the U.S. Section 232 steel tariffs and, asked about a sale, said he would consider it for a good offer, while adding that he still believes Stelco can be a good citizen in Canada. In a letter obtained by CBC, Stelco told Industry Minister Mélanie Joly that it is not violating the employment commitments made when Cleveland-Cliffs acquired the company, and that its situation stems from factors beyond its control, including U.S. tariffs of 50 per cent.
Ottawa's position is the opposite. Joly gave the company an ultimatum last week: produce a plan to save up to 500 jobs at risk in Hamilton or face potential legal action. Prime Minister Mark Carney said Ottawa will use all the powers it has against the company.
Goncalves has said he would not have acquired Stelco had he known Canada and the United States would become trade adversaries. With layoffs proceeding and neither side backing down, the dispute is now a test of how far Canada can go to enforce job guarantees attached to a foreign takeover — in court, if necessary.
