OTTAWA — NDP Leader Avi Lewis is calling on Prime Minister Mark Carney to nationalize Stelco to protect Canada's steel industry, putting him at odds with Conservative Leader Pierre Poilievre, who rejected government ownership of the company last week.Lewis issued the appeal Tuesday as Stelco's American owner, Cleveland-Cliffs, proceeds with layoffs affecting up to 500 workers at its Hamilton operations despite threats of legal action from Ottawa.“Canada cannot afford to lose its steel industry,” Lewis said. “That’s why today I am calling on Prime Minister Carney to nationalize Stelco and protect the jobs and industry our country depends on.”His proposal contrasts with comments Poilievre made during a media scrum Thursday, when a reporter asked whether the federal government should consider nationalizing Stelco.“No,” Poilievre replied.“We need a vibrant, private sector that grows our economy and make businesses that make money so that we can help save money for the Canadian people.”.Poilievre argued that government ownership would ultimately hurt the workers it was intended to protect.“We've seen government-run industry always destroys the working class,” he said. “It ultimately empties the pockets of the people to pay off powerful insiders, corporate power brokers, and others who take from the system.”Lewis, however, argued that nationalization was necessary because Cleveland-Cliffs had failed to honour employment commitments made when it acquired Stelco in 2024.“Stelco’s American owners have broken legally-binding commitments that they agreed to when they purchased the company in 2024, including maintaining at least the same number of unionized workers and most non-unionized employees,” Lewis said.He also criticized Cleveland-Cliffs CEO Lourenco Goncalves for supporting American steel tariffs, which Lewis said were designed to undermine Canada's manufacturing sector.The dispute has intensified since Industry Minister Mélanie Joly warned Cleveland-Cliffs last week that Ottawa could pursue legal action if the company failed to honour its commitments under the Investment Canada Act.Those undertakings were negotiated when the federal government approved the American steelmaker's acquisition of Stelco in 2024..Joly maintains the company is required to preserve unionized employment levels and most non-union positions, regardless of changing market conditions.Cleveland-Cliffs disputes that interpretation..In a letter to Joly dated Oct. 9, Stelco president and general counsel Paul Simon rejected the suggestion that the company had breached its obligations, arguing that the agreement did not explicitly prohibit layoffs.“Your representation that Stelco's planned layoffs cause it to breach its undertakings is false as the undertakings do not stipulate a commitment to avoid layoffs,” Simon wrote, according to a letter reported by Global News.The company maintains that unprecedented market conditions, including American tariffs of 50% on Canadian steel, have severely affected its ability to sell products to U.S. customers.Goncalves has argued that the layoffs are driven by market conditions rather than a lack of government financial assistance.Joly responded Saturday that the company's obligations remained legally binding and that federal lawyers were reviewing its response.Lewis welcomed Ottawa's willingness to pursue legal action but argued the process would take too long to protect the affected workers.“It’s a positive sign that the federal government is preparing to take legal action, but a court process will take years to resolve,” he said.“If we’re serious about saving these jobs and the Canadian steel industry, we need immediate action. That action must include nationalizing the plant.”.Lewis pointed to the British government's decision in July to nationalize British Steel, arguing that public ownership could preserve an industry critical to the country's economy.The British government brought British Steel into public ownership on July 16, following legislation passed by Parliament to protect domestic steel production and thousands of jobs.“They recognized what we in the NDP recognize – that once our steel industry is gone, it’s gone forever,” Lewis said.The Stelco dispute has renewed scrutiny of Canada's approval of foreign takeovers involving major industrial employers.United Steelworkers Local 1005 president Ron Wells has criticized Cleveland-Cliffs' interpretation of its employment commitments, saying workers were assured that bargaining-unit employment would be maintained for five years.The union has also questioned why the company's leadership supports American steel tariffs while citing those same trade barriers as a reason to reduce Canadian operations.Ottawa previously took legal action against U.S. Steel over employment and production commitments following its acquisition of Stelco's former operations. That dispute was settled in 2011 after the company agreed to revised undertakings.For Lewis, the latest layoffs demonstrate the risks of leaving strategically important industries under foreign ownership.“You don’t save Canada by allowing American investors to dismantle steel production in this country piece by piece,” he said.“It’s time for the Liberal government to take back control of our industry by nationalizing Stelco.”
