Stelco layoffs: a recall by Christmas? What it means

Stelco's owner now says he wants people back before Christmas. There is a condition, and Ottawa wants more than a hope. If you are on layoff in Hamilton, here is what changed on October 28, and what it means for you.

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What happened

• October 28: Lourenco Goncalves, CEO of Stelco's owner Cleveland-Cliffs, said his intention is to call back all 175 laid-off workers before Christmas "if our plan works" (The Canadian Press; The Globe and Mail).
• The condition: the plan depends on Canadian customers buying Canadian steel made by Stelco, he said in statements to The Canadian Press and The Globe and Mail. Since Ottawa won't restrict imports further, he said, Stelco is counting on those customers instead of tighter import limits (The Canadian Press).
• The count: he said 175 people have been laid off, not the up to 500 the company's September 28 letter warned of, and told The Globe and Mail that 175 is the most that will be affected. The president of United Steelworkers Local 1005 confirmed the 175 are in Hamilton and that no one has been laid off at Lake Erie Works so far (The Canadian Press).
• No sale for now: he said Stelco is not for sale, that he won't talk to buyers within the next calendar year, and that he would only consider selling after a year of higher production with all 175 back at work (The Globe and Mail; The Canadian Press).
• Ottawa's answer: Industry Minister Mélanie Joly said the company must give a concrete plan and timeline for recalls before she meets its CEO, and that "the clock is ticking." Separately, she said the government is consulting its lawyers about Mr. Goncalves's televised remark that he bought Stelco to stop it flooding the U.S. market (The Canadian Press).

The union is wary. Ron Wells, president of USW Local 1005, accused the company of using the layoffs to pressure Ottawa on steel imports: "we're against using our members as pawns" (The Canadian Press).

What a recall before Christmas would mean

Ontario's Employment Standards Act decides by the calendar whether a layoff is temporary or a termination. A layoff of no more than 13 weeks in any 20 consecutive weeks is temporary (s. 56(2)(a)). The first Hamilton layoffs took effect on Sunday, October 11 (The Canadian Press), and more followed the next week (CTV News). For the first group, week 13 ends around January 10, 2027, and a little later for those laid off after.

A recall before Christmas would fall inside that window. The layoff would stay temporary, and neither of the Act's payments would come due: termination pay is owed when a layoff runs past the temporary limit (s. 56(1)(c)), and severance pay, with 5 years of service, only at 35 weeks of layoff in 52 (s. 63(1)(c)).

What hasn't changed

The recall is an intention with a condition, not a date. If it doesn't happen, the rules in our last update still apply: a layoff can stay temporary past 13 weeks if the company keeps paying into your benefits or pension, or you receive supplementary unemployment benefits (s. 56(2)(b)), and in a union, at 35 weeks or more in 52 it stays temporary only if you are recalled within the time your collective agreement sets (s. 56(2)(c)). Our guide to the Stelco layoffs covers the agreements and your recall rights.

The 15 days Ottawa gave the company on October 22 run out in early November (CTV News). A court could order the company to keep its commitments, impose penalties or order a sale (The Globe and Mail).

What to do now

• Keep your layoff letter and note the day your layoff began: it sets every count above.
• Ask your steward who would be called back first under the collective agreement.
• Sign nothing about your recall rights before talking to your union.
• Go to the union's information session on Thursday, November 5, from noon to 2 p.m. at the Steelworkers Centre, 1031 Barton Street East, with Service Canada and Employment Insurance on training and re-employment (USW Local 1005).

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