Federal industry minister Melanie Joly said Stelco’s parent company could be forced to sell its Canadian assets if a court finds it broke legal commitments by laying off 500 workers.
In a scrum Wednesday, Joly said the government is still contemplating legal action against Stelco and its U.S. parent company Cleveland-Cliffs.
“A court process can lead to financial penalties, forcing them to abide by their commitment, and also a forced divestiture,” said Joly, citing section 40 of the Investment Canada Act. “Everything is on the table. I’m always open to sit down with the company, but we’re looking at everything that is possible to keep jobs in Canada.”
Neither Stelco nor Cleveland Cliffs immediately responded to a request for comment.
