The federal government told the U.S. owner of Hamilton‑based steelmaker Stelco that it has five business days to submit a detailed plan for keeping the plant’s workforce intact, otherwise legal steps may follow.

Cleveland‑Cliffs announced last week that it could lay off as many as 500 workers while it idles certain steel‑production lines at Stelco, a move the government says breaches the promises made when the company bought the mill in 2024.

Those promises are “binding commitments” under the Investment Canada Act, which were required as part of the $3.4‑billion acquisition and obligate the buyer to maintain at least the same level of unionised and non‑unionised staff as when the deal was announced.

Industry Minister Mélanie Joly wrote to Stelco’s president that Ottawa is prepared to seek a court ruling to enforce the agreement if the company does not comply with its undertakings.

According to Sandy Walker, co‑chair of Dentons’ competition and foreign‑investment review group, foreign‑takeover commitments under the Investment Canada Act usually last five years and cover details such as the amount of investment, the location of the acquired business and specific employment‑level requirements.

The demand shows how Canada can use its investment rules to protect jobs when a foreign owner’s strategy threatens the workforce, reinforcing the government’s willingness to act when commitments are not met.