Canada’s NDP urges federal takeover of Stelco amid looming layoffs

Floyd Brenz., Philippine Canadian Inquirer
October 14, 2026

Photo Courtesy: CBC News

Canada’s New Democratic Party is calling on the federal government to take ownership of steelmaker Stelco, arguing that nationalization could help protect Canadian jobs and preserve the country’s domestic steel industry amid planned layoffs.

NDP Leader Avi Lewis made the call on October 13, urging Prime Minister Mark Carney’s government to act quickly as Stelco’s U.S.-based parent company, Cleveland-Cliffs, moves ahead with plans to cut as many as 500 jobs at its Hamilton and Lake Erie facilities.

Lewis said relying on legal action against the company could take years, leaving affected workers uncertain about their employment and the future of steel production in Canada. He argued that a government takeover should be considered as a more immediate way to safeguard the industry.

The dispute follows Cleveland-Cliffs’ 2024 acquisition of Stelco, which came with commitments to maintain employment levels, including the number of unionized workers and most non-unionized employees. Ottawa has questioned whether the planned layoffs comply with those obligations and has warned the company that it could face legal consequences.

Industry Minister Mélanie Joly has demanded a plan from Cleveland-Cliffs outlining how it intends to meet its commitments. The federal government has also said it offered assistance in an effort to avert the job cuts.

Cleveland-Cliffs has attributed the planned production changes and layoffs to difficult market conditions, including U.S. tariffs and pressures from steel imports. The company has said the measures are necessary to support its operations.

Lewis pointed to the United Kingdom’s decision to bring British Steel under public ownership as an example of government intervention to protect a strategically important industry. He said Canada should consider a similar approach rather than risk losing steelmaking capacity and skilled workers.

The proposal has also drawn attention from legal experts who say nationalization is one possible option if the federal government’s efforts to enforce the original acquisition commitments fail. However, a takeover would raise questions about the cost to taxpayers, the future management of the company and the government’s role in the steel market.

For now, the federal government is pursuing its response to Cleveland-Cliffs’ employment commitments, while workers face uncertainty over the planned cuts. Whether Ottawa will consider nationalization remains unresolved.