Stelco is recalling 175 temporarily laid-off workers as it plans to restart its Hamilton, Ont., finishing operations on Dec. 1, the company said Friday. Stelco attributed the move to increased customer demand, and president Paul Simon thanked customers for their faith in the company and workers for their patience and resilience during what he called a challenging period.

The layoffs were announced in September by Stelco's parent company, Cleveland-Cliffs Inc., which cited US tariffs, weak demand for Canadian steel and competition from imported steel products. The announcement drew the ire of Ottawa, with Industry Minister Mélanie Joly saying the cuts went against conditions the government set when approving the steelmaker's sale.S2

Cleveland-Cliffs said it has now reached agreement with a sufficient volume of its customers to restart operations and recall all of the laid-off workers. It noted that restarting will take several weeks, and that all affected employees will be made whole retroactively for the standard wages they would have received during the temporary layoff.S2

The layoff announcement came roughly two years after Cleveland-Cliffs acquired Stelco in 2024, a transaction that required government approval under the Investment Canada Act. Joly had earlier put the company on notice to address alleged violations of its commitments under that process, including employment guarantees, or face potential legal action. The federal government was also consulting its lawyers about remarks by Cleveland-Cliffs CEO Lourenco Goncalves suggesting he bought Stelco to protect the company's US operations from Canadian competition. Joly had warned that Cleveland-Cliffs could be forced to sell Stelco if it failed to meet its binding commitments.S2