Screen grab from announcement through Prime Minister Mark Carney's official YouTube Channel
The future of jobs at Stelco is drawing renewed attention as the federal and Ontario governments announce an $8.7-billion plan to support steel, critical minerals and automotive manufacturing.
Prime Minister Mark Carney and Ontario Premier Doug Ford unveiled the funding Wednesday in Ottawa as the industries continue to face pressure from U.S. tariffs and shifting trade relationships.
For workers in Nanticoke and Hamilton, the announcement comes amid a dispute between Ottawa and Stelco’s American owner, Cleveland-Cliffs, over plans to temporarily lay off up to 500 employees.
Ford addressed the situation at Stelco during the announcement, where the impact on workers was a central concern.
Cleveland-Cliffs has cited weak demand, U.S. steel tariffs and continued import pressure as reasons for the layoffs and production slowdowns.
The company made binding commitments when it purchased Stelco in 2024 to maintain at least the same number of unionized employees, along with most non-unionized positions, for five years.
Industry Minister Mélanie Joly has demanded that the company uphold those commitments.
The dispute escalated after Cleveland-Cliffs CEO Lourenco Goncalves rejected federal offers of bridge financing and loans, arguing that government assistance would not have prevented the temporary layoffs.
Goncalves has maintained that the company is complying with its contractual obligations and has described Ottawa’s response as bullying and harassment.
Asked about the dispute Wednesday, Carney addressed the employment conditions attached to the Stelco purchase.
Carney did not directly answer questions about whether the federal or provincial governments would consider purchasing Stelco.
The broader funding package includes a new steel action fund, with $3.5 billion from Ottawa and $1.7 billion from Ontario over five years.
The fund is intended to help steelmakers expand the types of products they manufacture and respond to demand from sectors such as defence, rail, ports and pipelines.
Carney said the measures are expected to help protect roughly 100,000 jobs in the steel sector. The governments also pledged stronger measures against foreign steel dumping, including increased border enforcement.
The Canadian Steel Producers Association welcomed the announcement and the proposed protections against dumping.
Critical minerals development is another major part of the plan.
Ottawa will provide $1 billion over three years for infrastructure, particularly roads, to support access to northern Ontario’s Ring of Fire region. That funding matches an earlier $1-billion provincial commitment.
The governments plan to establish a working group with local Indigenous communities, including communities that oppose development in the region. That work is expected to include consideration of conservation measures and Indigenous protected areas.
Ontario and Ottawa also agreed to co-ordinate permitting to streamline project approvals.
A further $2.5 billion will support the automotive sector, including $1.5 billion from the federal government, to help manufacturers respond to growing demand for electric vehicles.
Ford said the changing relationship with the United States requires governments to plan for lasting economic adjustments.
Carney said Canada remains ready to negotiate a trade agreement with Washington and that he spoke with U.S. President Donald Trump Wednesday morning.
