When asked by iPolitics why the government hasn’t already filed a suit, Carney said there’s a process that must be followed and he’s hoping the company will come to the table to work out a deal.
Prime Minister Mark Carney says he’s prepared to “very quickly” hold to account an American-owned steelmaker that has laid off hundreds of workers at its plants in southern Ontario.
Speaking to reporters on Wednesday, Carney said Cleveland Cliffs has one more day to respond to a demand from the federal government to honour its 2024 agreement with Ottawa to purchase Stelco.
That deal, made under the auspices of the Investment Canada Act, included a requirement for the company to maintain the same employments levels until 2029.
“When you make a commitment with the government of Canada, you respect that commitment, and the government will hold companies to the responsibility,” he said at a press conference on a new joint Canada-Ontario financial aid package.
Doug Ford, who joined Carney at the announcement on Parliament Hill, also urged the company’s CEO Lourenco Goncalves to honour the 2024 agreement.
“I support all the actions from the federal government… when you make a commitment, it’s a commitment. You don’t go back on your commitments,” he said.
The saga with Stelco started earlier this month when it announced plans to lay off up to 500 workers at its Hamilton and Lake Erie facilities.
The federal government said it had offered financial assistance to avoid the job losses, and Industry Minister Melanie Joly quickly sent a letter demanding a plan from Cleveland-Cliffs on how it would honour its agreement.
The company responded that it was forced to take this action because of punishing U.S. tariffs and Canada’s unwillingness to stop foreign countries from dumping galvanized and rolled steel into the market.
Joly has warned the company to reverse the layoffs or risk enforcement actions under the Investment Canada Act. These could include a forced sale or monetary penalties.
When asked by iPolitics why the government hasn’t already filed a suit, Carney said there’s a process that must be followed and he’s hoping the company will come to the table to work out a deal.
“There’s a legal process that we’re following… There there are a set set of steps that we’re taking in the right order,” he said.
“We’ve given due notice in other aspects… [and] there’s also an opportunity for the company to respect their respect their commitments. Of course, we’re happy to sit down and work with them.”