Carney says workers have been ‘betrayed’ by steelmaker Stelco’s layoffs

Prime Minister Mark Carney in Vancouver, B.C., September 29, 2026. Photo by Arlen Redekop /PNG

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OTTAWA — Prime Minister Mark Carney expressed his disappointment with steelmaker Stelco’s decision to lay off hundreds of workers at its plant in Hamilton, Ont., while also promising his government will explore legal options to oppose what he described as the company’s betrayal of Canadian workers.

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“We were very disappointed at this decision by Stelco,” said Carney, during a press conference in Vancouver on Tuesday. “Our thoughts are with the workers and the families who have been betrayed by the company.”

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Stelco is owned by Cleveland-Cliffs Inc., an American steel manufacturer based in Ohio. The chairman and CEO of the company, Lourenco C. Goncalves, has previously expressed support for U.S. President Donald Trump’s tariffs.

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“I would just take note that this situation is caused by the U.S. tariffs, and…the CEO of the ultimate owner of Stelco, Cleveland Cliffs, applauded President Trump for putting those tariffs on,” said Carney.

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Cleveland-Cliffs acquired the Hamilton-based Stelco in 2024 for $3.4 billion, after former industry minister François-Philippe Champagne approved the investment with several binding conditions.

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One of those conditions was to maintain the same number of unionized employees and the vast majority of non-unionized employees that were employed when the transaction was announced for a period of five years.

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Carney said his government intends to hold Cleveland-Cliffs to those binding obligations that were set out in the approval of the acquisition.

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“The company made representations and has legal obligations for employment,” he said. “We intend to use all powers that we have and pursue them to the full extent of the law.”

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The layoffs at Stelco come on the heels of trade talks between Canada and the United States breaking down last month. There are currently no scheduled meetings to resume negotiations between both parties, although Canada-U.S. Trade Minister Dominic LeBlanc said communication continues with his American counterparts. Section 232 tariffs amounting to 50 per cent remain on Canadian steel and aluminum.

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On Monday, Trump said he believes he can strike a trade deal with Canada in the coming weeks and anticipates an apology from Canadian officials.

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“They’re going to come in, and they’re going to say, ‘Sir, we are sorry’,” he told reporters.

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On Tuesday, Trump’s trade adviser Peter Navarro said Canadian lobbyists in Washington should “get the hell out of our country” when he was asked about the Canada trade dispute at an economic conference in Washington.

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Carney declined to comment on Tuesday about Trump and Navarro’s remarks.

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“It continues to be the case that Canada stands ready to negotiate in good faith what is there, which is a mutually advantageous trade arrangement that respects both our country’s sovereignty,” the prime minister said.

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National Post

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