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Canada says surprised by U.S. Steel job cuts
OTTAWA (Reuters) – Canada was surprised by the announcement from U.S. Steel Corp that it is temporarily shutting down most of its operations at a pair of plants in southern Ontario, affecting up to 1,500 jobs, Industry Minister Tony Clement said on Wednesday.
Clement also told reporters the government was investigating to see if the company was sticking to commitments it gave to Ottawa under the Investment Canada Act when it was given the go-ahead to buy Canadian steel company Stelco in 2007.
U.S. Steel said on Tuesday it was temporarily shutting down most of its operations at the plants in Hamilton and Nanticoke. It blamed worsening market conditions.
"We were, I would have to say, surprised by the announcement by U.S. Steel," said Clement.
"We take the position that any company that has made Investment Canada undertakings has to live up to those undertakings so ... we will be reviewing very diligently the undertakings very quickly," he added, but gave no details.
Vale Inco, the nickel mining and processing division of Brazil's Companhia Vale do Rio Doce, said on Tuesday it would eliminate more than 400 jobs in Canada, in the face of slumping markets.
Clement said initially that he would look into whether Vale was breaking a commitment to Ottawa that, in return for being allowed to buy Canadian nickel producer Inco, it would not cut jobs for three years. He later said the Brazilian firm might not be breaking the agreement after all.
(Reporting by David Ljunggren; editing by Rob Wilson)
OTTAWA (Reuters) – Canada was surprised by the announcement from U.S. Steel Corp that it is temporarily shutting down most of its operations at a pair of plants in southern Ontario, affecting up to 1,500 jobs, Industry Minister Tony Clement said on Wednesday.
Clement also told reporters the government was investigating to see if the company was sticking to commitments it gave to Ottawa under the Investment Canada Act when it was given the go-ahead to buy Canadian steel company Stelco in 2007.
U.S. Steel said on Tuesday it was temporarily shutting down most of its operations at the plants in Hamilton and Nanticoke. It blamed worsening market conditions.
"We were, I would have to say, surprised by the announcement by U.S. Steel," said Clement.
"We take the position that any company that has made Investment Canada undertakings has to live up to those undertakings so ... we will be reviewing very diligently the undertakings very quickly," he added, but gave no details.
Vale Inco, the nickel mining and processing division of Brazil's Companhia Vale do Rio Doce, said on Tuesday it would eliminate more than 400 jobs in Canada, in the face of slumping markets.
Clement said initially that he would look into whether Vale was breaking a commitment to Ottawa that, in return for being allowed to buy Canadian nickel producer Inco, it would not cut jobs for three years. He later said the Brazilian firm might not be breaking the agreement after all.
(Reporting by David Ljunggren; editing by Rob Wilson)
