Stelco layoff legal challenge timeline is in ‘days,’ Joly says

A resolution of the standoff between the federal government and Stelco is a “question of days,” Industry Minister Melanie Joly said on Friday.

The Ontario-based steel manufacturer announced last month that pressure from U.S. tariffs forced it to concentrate steel production at its Lake Erie Works plant in Haldimand, and halt production at its plant in Hamilton. Some employees would be offered transfers, but many would be out of work.

After the announcement, Joly said Stelco Holdings Inc. cannot use the trade war to justify cutting jobs it committed to.

“It’s a question of days,” Joly said on Friday when asked if there was a timeline for how soon the federal government plans to resolve the standoff.

The federal government believes there have been “multiple breaches of the commitments” that Stelco made under the Investment Canada Act.

Stelco is facing financial penalties and “a potential forced divestiture,” which would force them to sell all their assets in Canada, Joly said.

“We will apply the full force of the law and every tool in the toolbox to ensure that this strategic capacity remains operational. And they must keep the jobs in Canada or face the prospect of having to sell their Canadian assets,” she said on Friday.

Approximately 90 workers received notices last week, and the first layoffs took effect Sunday, the president of United Steelworkers local 1005 previously told Global News.

The remainder of the layoffs are expected to roll out over the course of three weeks.