US based steelmaker Cleveland-Cliffs Inc. announced on October 26, that its wholly owned subsidiary Stelco Inc. has sent a letter to Canada's Minister of Industry, Melanie Joly, with an updated report on Stelco's compliance with the undertakings it made under the Investment Canada Act (ICA) when Cleveland-Cliffs acquired Stelco.
According to the company, an “exhaustive review” was conducted with its legal counsel, and they found that Stelco is in full compliance with all 34 of its undertakings, or obligations, and that it exceeds several of them, including those on employment.
In the company statement, Cleveland-Cliffs said that for the current reporting period, Stelco expects average annual employment of at least 1,879 full-time equivalent bargaining unit employees, which is 113 above the required 1,766. It expects salaried employment to average at least 627 full-time equivalent employees, against a required 603.
The company also said it complies with undertaking 13 on trade policy advocacy. It noted that one part of that undertaking requires it to oppose Chinese electric vehicle subsidies and Chinese investment in Canada, a goal it said has been complicated by the Canadian government's own change in policy on Chinese electric vehicles.
In a final twist, Cleveland-Cliffs included in the statement that on October 23, Stelco asked for a meeting between Joly and Cleveland-Cliffs chief executive officer, Lourenco Goncalves, to discuss how to bring back the 175 Hamilton workers who have been “temporarily laid off.” The company said the minister had not yet answered the request.
Goncalves said “We remain strong advocates for the US Section 232 policy, and believe a Fortress North America solution would be in the best interest of the United States and Canada. I am confident that our requested sit down meeting would lead to a great path forward for both sides because we want the same things as Minister Joly and Ontario Premier Doug Ford: a strong Stelco, good jobs in Hamilton and a Canadian steel industry that can compete and succeed. We are ready to sit down and solve this problem for our workers.”
Media sources reported the following day that Joly responded on October 27, saying she is willing to meet with the company, but only after it presents “a plan to bring the jobs back.” Cleveland-Cliffs has not yet responded, though a gap in perspective remains.
Stelco will update its compliance report after the current reporting period closes on October 31, as the ICA requires, according to the release.
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