The key decision maker behind the mass layoffs at a century-old steel mill in Hamilton says “no amount of money” from the federal government would have convinced Stelco to continue manufacturing product with low demand in Canada.
On Monday, Stelco, which is owned by U.S.-based steelmaker Cleveland-Cliffs, announced it would lay off roughly 350 employees and offer them positions at a nearby steel mill instead, as the company pauses production of galvanized steel.
The move was met with a sharp rebuke from Prime Minister Mark Carney, who said the company “betrayed” Canadian workers and insisted “there’s money on the table” to keep employees on the job.
In an exclusive interview with Global News, Lourenco Goncalves, the chairman and CEO of Cleveland-Cliffs, said the company’s decision was purely market-driven and that financial incentives could not fix the fundamental issues.
“I’m not shutting down, I’m not dismantling,” Goncalves said during a 10-minute phone call. “There’s no market in Canada for the amount of galvanized steel we produce in Canada. We need to export… to the United States.”
“Until we reestablish that, there’s nothing we can do, nothing.”
Sources with knowledge of the high-level discussions between Goncalves and Ottawa said the federal government “tried everything” to convince Stelco to delay the layoffs, including short-term bridge financing, longer-term loans, retrofitting and access to new markets in Canada.
One source described it as the “most gratuitous terms to try and keep people employed longer,” but Goncalves “refused” the offers and expected something bigger.
“He quite literally said ‘nope,’ we don’t want your help unless it’s a blank cheque to the tune of billions with no conditions,” the source said, speaking on the condition of anonymity to discuss sensitive talks.
Goncalves vehemently pushed back against the assertion.
“That’s not true. That’s a completely untruthful statement. I did not ask for a blank cheque to the tune of billions with no conditions, that’s absolutely wrong,” Goncalves told Global News.
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Goncalves said while the majority of his discussions were with a senior cabinet minister in the federal government, they did not rise to the level of the Prime Minister’s Office, despite his desire to escalate the conversation.
“I have never met Prime Minister Mark Carney. I tried to get to Prime Minister Mark Carney, but he never really talked to me.”
The Trump factor and Fortress North America
Despite his prior support of the Trump administration’s tariffs – and the federal government’s quiet belief, according to sources, that his relationship and donation record was a motivating factor – Goncalves insists the cut in production has little to do with his ties to the White House.
“I have been in this business for 45 years, so I have worked with so many different persons, Republicans and Democrats. Trump, then Biden, then Trump,” Goncalves said.
“That’s a fallacy, that’s absurd.”
Instead, Goncalves insists he shares the vision of a more integrated economy pushed by Ontario Premier Doug Ford and the federal government.
“I have been trying for too long to implement what’s called Fortress North America to create the preconditions to re-establish a bridge between United States and Canada. But I have been unable to convince the Canadian government on what to do,” Goncalves said.
While Goncalves declined to wade into specific conversations he had with the federal government, his own assessment of the current situation appears to lay heavy blame on Canada, while downplaying the impact of Trump’s tariff war.
“I need an ability to sell more galvanized steel. I can’t increase the domestic market in Canada. I cannot afford to block imports. But even if they shut down imports of galvanized completely – 100 per cent – we still have more production of galvanized steel in Canada than the domestic markets of Canada.”
“So there’s only one solution. We need to be able to export.”
Future of Stelco
Goncalves stressed that while Stelco is pausing some of the production at its facility in Hamilton, the decision is “not permanent” because the company is waiting for the market to “resolve itself.”
“Stelco will continue to produce the same amount of steel. I will concentrate on hot-rolled steel, because there’s no market for galvanized steel,” Goncalves told Global News.
Goncalves said without the ability to export to the United States at the current tariff rates, his “temporary solution” is to concentrate on products that still make the company money and “wait until the situation normalizes.”
While that could take two years – or longer – Goncalves said the company is committing to boost employment, once the trade war settles, allowing the company to export Canadian-made steel.
“Let’s assume that we were able to produce galvanized steel again. What am I going to do? Re-hire everybody and go back to produce galvanized steel.”
Government really wanted to just throw money at them to pay people who would be staying at home because there is no work, all to save face. Canada is dead
How can Carney imply that he’s disappointed with their decision if he never took the time to talk to them??? Some terrible relationship building there from our PMO
Brookfield brookfield brookfield
A name you will never forget soon as they will own Canada
It would help a lot of older employees if the company offered an early retirement incentive as many companies do in a situation like this. Cleveland Cliffs should have the decency to do that. Working at Stelco , I know of many 60 or old plus employees who would accept such and offer, creating spaces for displaced employees.
It is laughable that Carney thinks he can sue them and win.
The man fully intended to create this trade war and that’s why he moved his company to NYC before being elected.
Trump trump Trump trump Trump trump Trump trump ELBOWS TRUMP ELBOWS TRUMP ELBOWS TRUMP ELBOWS TRUMP ELBOWS
Brainwashed fools
Elbows up and sunny ways! How’s that working out for you? Clowns.
Google”Why Canada’s GDP per capita crisis is real: DeepDive”
“From 2014 to 2024, Canada’s real GDP per capita adjusted for purchasing power parity grew by just 3.2 percent in total, an anemic 0.4 percent per year on average, and the third lowest among 38 advanced nations. Over the same period, the United States posted 20.2 percent total growth (1.9 percent annually), and the OECD average reached 15.3 percent (1.4 percent annually).”
Mark Carney’s tough on Trump, elbows up approach is costing real Canadian jobs. What a lying crook. How is Brookfield doing? it sure feels line they are siphoning our hard earned tax dollars right into Skylark Carneys pockets while he calls it progress and sells us out. Wake up
Ukraine needs more billions of your dollars! Aren’t you scared of Putin?! Send more billions to Zelensky, cocaine mountain is getting small.
Another company dismantled for Brookfield’s profit at the expense of the Canadian worker and tax payer. Thanks Mark Carney (largest tax dodger in Canadian history )
@Ben you don’t know how to read do you?
MAGA are chronic liars. What’s new. Trump, the queen of lies is an example. We remember who are our friends and foes in times like this. One both side of the borders.
Hmmm…”the government accuses them of wanting a blank cheque”…and Stelco says not true. Starting to smell like another Mr Carney “Gordie Howe Bridge” fable.
Ben Canadians “are in an emotional state” in part because the LPC stocked fear to win the last election.
Time for Carney to deliver
Both countries have weak leaders? They were voted in to work out deals, not walk away or tax each other to death? This is not good for either country….But they are still getting paid and I’m sure there portfolio’s are doing fine….We’re all out of unemployed, food and fuel out of reach. Housing is scarce. Looks like our leaders are taking care of us.
@JOANY 212pm. Respectfully, Eby was not responsible for lumber mills shutting down. Thats on US tariffs and the big lie from the US about low stumpage fees in Canada.
@Anonymous at 102pm. With respect, yes it was Carney who said he would get a deal, or implied it. But once we started discussing a deal, the US refused to compromise and the price was too high. Also it’s politically difficult for Carney to negotiate when: 1)Poilievre says “no concessions” and 2)Canadians are in an emotional state and refuse to even consider signing a deal which honestly will not be on good economic terms.
@Anonymous. It isn’t on Carney! It is on the Trump lovin’ CEO. Should never have let Cleveland Cliffs buy Stelco.
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@gord hashit, hundred names on hundred sites, don’t ever fcking preach to anyone
To: JDog, Qbit, and Anonymous. When it comes to being Trump supporters and anti Canadian:
“An appeaser is one who feeds a crocodile, hoping it will eat him last”. (Winston Churchill)
Have some ‘backbone’ when speaking out. If you are too afraid to use your real name in the comments then your opinion is worthless.
This is what happens when you don’t become the 69th state
This all falls on Carney. Luckily he is starting again with his century initiative by increasing immigration to flood our country yet again with low skilled third world workers.
Carney keeps blaming Trump. All political theater. If Carney agreed to a deal with Trump then who would be the boogie-man that all the elbows up idiots could blame for Carneys awful leadership.
Carney betrayed Canadians when he moved Brookfield HQ from Canada to the USA. He is a total hypocrite.
Just nationalize the company and make it Canadian again.
@Ben Although you have the right to say what you believe, and I for one will defend that right, you don’t have the right to twist the truth and facts to suit a political agenda. So if you want an honest and accurate debate lets have at it but don’t just be a propaganda machine for the Carney Liberals.
We really should not be allowing our strategic manufacturers to be bought by unreliable allies
LNG plant in BC should use Canadian steel and cement not like phase one that used Chinese steel an labour .Carney was asked yesterday at news conference about using Canadian steel to construct LNG plant and he did not have clear answer!
If we can’t use our own resources to build Canada we should not complain if foreigners close steel plants here
Oh! But no one cared at all when people lost their homes in British Columbia due to the NDP shutting lumber mills down with their horrible governance. How many now? Like 30? 30ish lumber mills, shut down, never to return, because of the NDP.
Did anyone here know that? Or are we just gonna focus on CANADA vs USA? And not CANADA vs CANADA?
@Ben. Read the comments. Nobody wants to hear from you. Shut up.
Trump just shat down carnholes throat, first of many more to come!
What reasonable man, navigating problems created by weak corrupt humans.
Shut down, good jobs lost. No Canadian Steel for BC ferries built in china. Who promoted that deal. Barney.
So, Carney’s inability to negotiate has cost Stelco their sales market so the Liberal government offers a bail out with tax dollars. Stelco refuses and the government accuses them of wanting a blank cheque.
I wouldn’t be surprised if the government offers MAID to the workers that are losing their jobs.
This just gives the excuse for the company to do what it wanted to do when it bought Stelco. Shut it down. Always was the goal, they just got their breakaway and an empty net. Gooooooooal!
Ben, your barrage of bad-faith posts don’t fool everyone.
@Ben. Stop playing on the internet.
@Ben. No the fault falls at the feet of Carney. Other countries have made deals with Trump but Carney won’t even after an election promise of getting the deals done and the end result is Canadians are losing jobs Also when he couldn’t get any deal he conned the Canadian voters by saying we don’t need the US to buy are products we will be our own customers well it seems like that was an elbows up propaganda move because Canadians are losing their jobs and that’s a fact. Canadians hatred of Trump is stopping them thinking logically and Canadians are paying the price and this is only the beginning and blaming Trump is wearing very thin.
@Ben Respectuflly Ben wasn’t it Carney who bragged, yes bragged that he was THE ONLY ONE who could get a deal done with Trump, and it was Carney who also promised that he would have a deal done within a month of being elected. Facts don’t change no matter how much you want them to.
Carney & co are working for foreign interests, that is all there is to it.
It would have been interesting to know what he thinks Canada should do, what preconditions are needed to re-establish a bridge between United States and Canada. He’s an American. Does it have something to do with joining United States or becoming a vassal state?
Welcome to cunada, voted number one shathole country 15 years in a row!
Don’t blame Carney for Ford being the problem. We’ve lost so much under Ford
A nation run by a banker will always be increasing its debt.
The ONLY reason that Carney is prepared to give away our money to companies that are struggling because of the tariffs and Carney’s lack of ability to deal with them, is NOT to save Canadian workers jobs, it is to maintain his own political image. Let’s not beat about the bush here, Carney is useless in dealing with Trump and the only recourse he has to keep the elbows up crowd onside is to spend billions of dollars of money we don’t have and which we have to borrow at exorbitant interest rates that are currently costing us well over a billion dollars every week just to service the Liberal created debt.
The blame squarely lies with Trump and the US administration who illegally instituted tariffs. Those who seek to deflect blame on Carney are, respectfully, misguided.
Why does Carney think throwing money at these companies will fix the problem it only makes it worse. If the work isn’t there for employees to do than they have to be laid off that is fact. If people are not buying your product then you stop making it, it called supply and demand no demand no supply. The best way Carney can deal with these problems is to get back to the table and deal with the tariffs so people start buying from these companies again. If companies cannot sell their products they will close that’s basic economics and in turn Canadians will lose their jobs and throwing good money at it may slow the process but won’t change the outcome. Companies need to do business to make money and if they don’t make money they close
“I have never met Prime Minister Mark Carney. I tried to get to Prime Minister Mark Carney, but he never really talked to me.”
Thats all you need to know right there.