Canada Threatens Legal Action Against Steelmaker Over Layoffs

The Canadian government has signaled it may take legal action against Cleveland-Cliffs, the US-based owner of Canada-based steelmaker Stelco, over its decision to lay off hundreds of workers. Ottawa is reviewing the company's refusal to halt the layoffs, which it says violate commitments made during the acquisition of Stelco in 2024. The government is leveraging the Investment Canada Act, which allows for financial penalties, court orders, or asset seizures if companies fail to meet employment obligations.