Contributing Lawyers


Cyndee Todgham Cherniak

United States

Susan Kohn Ross


Andrew Hudson

Canada Taking US Steel to Court Over Alleged Broken Promises Not to Close Stelco Plants

On July 17, 2009, Canada's Industry Minister announced that the Canada filed an application with the Federal Court of Canada asking US Steel to honour the commitments it made when it acquired Hamilton, Ontario-based Stelco. The Minister said he expected U.S. Steel to stick to the undertakings it had given at the time of its Stelco takeover on capital expenditures, research and development and production.

In March, 2009, U.S. Steel announced plans to shut down most of its operations at two big former Stelco plants in Ontario, affecting up to 1,500 jobs. US Steel blamed adverse market conditions for its decision.

The Federal Government is asking the Federal Court to ÔÇťorder appropriate measures to remedy this situation. This is the next step in the enforcement process under Section 40 of the Act."

Seeking a court order to force a company to maintain job commitments is an unusual step for the Canadian government. However, it reflects growing desire to protect Canadian jobs when a foreign company takes over a company in Canada's steel and mining industries.

Please go to the following link to read the announcement -;jsessionid=ac1b105430d716dabf65c71a485196cdcf8e528e77e1.e34Rc3iMbx8Oai0Tbx0SaxePb3v0?m=%2Findex&nid=468179


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