The Globe and Mail reports in its Thursday edition that U.S. steelmaker Cleveland-Cliffs, owner of Stelco, could face financial penalties or be forced to divest its Canadian operations if it proceeds with hundreds of layoffs in Ontario, Industry Minister Mélanie Joly said Wednesday. The Globe's Steven Chase and Niall McGee writes that Stelco announced on Sept. 28 that it was laying off up to 500 workers in Hamilton and Nanticoke, Ont., saying it couldn't compete in the galvanized steel market as a result of the trade war with the United States. Ottawa considers these layoffs a breach of commitments that the steelmaker made when it acquired Stelco. The Industry Minister told reporters that she expects Stelco to uphold its commitments. "Right now, a business decision or even a change in market conditions cannot be used to not follow the commitment," Ms. Joly said. Earlier this month, Ms. Joly warned that she would invoke the "full force of the law" to enforce those obligations. Cliffs chief executive officer Lourenco Goncalves, a big supporter of U.S. President Donald Trump, said he is prepared to immediately call back laid-off workers at Stelco if Ottawa can reach a "Fortress North America" trade pact with the U.S.
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