Stelco layoffs: owner says it kept its promise. What now

Stelco's U.S. owner has answered Ottawa: it says it kept every promise it made when it bought the steelmaker, and it calls the Hamilton layoffs temporary. The minister wants a plan to bring workers back before she meets its CEO. If you are on layoff, here is what this changes for you, and what it doesn't.

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What happened

• October 23: Stelco asked for a meeting between Industry Minister Mélanie Joly and Lourenco Goncalves, the CEO of its owner, Cleveland-Cliffs, to discuss "a path toward resuming full employment" for 175 Hamilton workers it says are temporarily laid off (Cleveland-Cliffs release; The Globe and Mail; CHCH News).
• October 26: In a letter to the minister, the company said it complies with each of the 34 undertakings behind Ottawa's approval of the 2024 purchase. It expects an annual average of at least 1,879 full-time-equivalent unionized workers this reporting period, against 1,766 required (Cleveland-Cliffs release; The Canadian Press; CHCH News).
• October 27: The minister said she wants a concrete plan and timeline for restoring jobs before meeting the CEO. She says the company has broken six binding commitments; Ottawa could go to court, seek financial penalties or require the sale of Stelco (The Canadian Press, on Global News and BNN Bloomberg).

The two sides read the promise differently. The company counts the average number of unionized employees over the reporting period. Ottawa says that by going ahead with the layoffs, the company breaches its commitment to keep at least the same number of unionized employees (The Globe and Mail).

The company's 175 is its own count for Hamilton. When notices began on October 7, the union expected about 330 layoffs there over three weeks, the first taking effect on Sunday, October 11 (The Canadian Press).

The dates to watch

October 31: the company's reporting period closes, and it says it will then update its compliance report. Early November: the 15 days Ottawa gave the company on October 22 run out (see our article on the deadline).

"Temporary" is a word. The law counts weeks

Whatever the company calls it, Ontario's Employment Standards Act decides by the calendar:

• A layoff of up to 13 weeks in any 20 is temporary (s. 56(2)(a)). For a layoff that began October 11, that is early January.
• It can stay temporary longer, while it lasts less than 35 weeks in 52, if, for example, the company keeps paying into your benefits or pension, or you receive supplementary unemployment benefits (s. 56(2)(b)).
• In a union, a layoff of 35 weeks or more stays temporary only if you are recalled within the time your collective agreement sets (s. 56(2)(c)). Otherwise your employment is treated as ended, and termination pay, and severance pay with 5 or more years of service, come due. Week 35 falls in mid-June 2027 for the first layoffs.

Our guide to the Stelco layoffs has the union agreements and the choice between your pay and your recall rights.

What to do now

Note the day your layoff began and keep every letter. Ask your steward whether you receive supplementary unemployment benefits and whether the company still pays into your benefits: it changes which week counts. Sign nothing about your recall rights before talking to your union.

Ask about your layoff

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