Legal Expert Urges Canada to Consider Nationalizing Stelco
HAMILTON, Canada — October 10, 2026
As layoffs continue at Hamilton’s Stelco steel plant, a legal expert has urged the Canadian government to consider nationalizing the company to protect domestic jobs and preserve the country’s steel industry expertise.
Nicolas Lamp, an associate professor at Queen’s University specializing in law and policy studies, said Ottawa should examine whether government ownership could produce better outcomes for Canadian workers. He questioned whether Stelco’s current management was prioritizing the interests of its Canadian workforce amid the ongoing trade dispute between Canada and the United States.
Lamp argued that a potential conflict of interest could influence the company’s leadership because its US operations may benefit from tariffs imposed during the trade war. He suggested that these circumstances, combined with uncertainty surrounding the company’s future, warranted serious consideration of nationalization as a possible solution.
The professor also warned that Canada could lose valuable industrial expertise if experienced steelworkers leave their jobs. Once workers relocate, change careers or retire, replacing their knowledge and skills could prove difficult.
He emphasized that preserving this workforce is particularly important as Canada plans major infrastructure developments and industrial projects that require skilled employees.
Stelco’s Hamilton facility has already begun implementing layoffs expected to affect between 300 and 350 workers. The reductions have intensified concerns about employment security and the future of the country’s domestic steel production.
Ron Wells, president of United Steelworkers Local 1005, expressed openness to the possibility of nationalization. Although he acknowledged uncertainty about how such a move would operate, he said government ownership could be worth considering, pointing to established Canadian Crown corporations such as CN and Canada Post as examples.
Ottawa Pressures Stelco Owner Over Employment Commitments
The debate over nationalization comes as the federal government increases pressure on Cleveland-Cliffs, the US steelmaker that acquired Stelco in 2024.
Canadian Industry Minister Mélanie Joly gave the company five business days to submit a plan explaining how it would honour its commitments to maintain Canadian jobs under the Investment Canada Act.
In a letter obtained by CBC News, Joly stressed that the government takes compliance with investment commitments seriously. She also warned that the legislation provides several possible remedies when companies fail to meet their obligations.
These measures could include court orders requiring compliance, the forced sale of assets or financial penalties.
The government’s response could therefore have significant implications for Stelco’s ownership, its workforce and the future of Canada’s steel industry as trade tensions continue between Ottawa and Washington.
NEWS DESK
PRESS UPDATE