OTTAWA - The federal government is going to court to force American industrial giant U.S. Steel Corp. to live up to job commitments it made two years ago in return for approval to buy the former Stelco Inc. of Hamilton.

Industry Minister Tony Clement said Friday he has asking the Federal Court of Canada to force the steel producer to meet commitments it made in 2007 on capital spending, production and research and development spending in Canada.

Hamilton-based U.S. Steel Canada shut down most of its Canadian operations in southern Ontario this spring, affecting about 1,500 employees, because of weak markets. The company has recalled some workers recently.

After the mill shutdowns, Clement sent a demand letter to U.S. Steel Corp. (NYSE:X) in May, asking the Pittsburgh-based parent company to comply with its 2007 commitments.

Such a letter was the first step in the enforcement process under the Investment Canada Act.

"I have carefully reviewed U.S. Steel's response to my letter," Clement said in a release. "I remain of the view that U.S. Steel is not complying with its undertakings, and I am not satisfied by its explanations for non-compliance.

"I am therefore announcing today that, on my instructions, an application has been filed with the Federal Court of Canada asking the Court to order 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. But it reflects growing unease in the country about the takeover of Canada's steel and mining industries and whether foreign owners will keep industrial jobs in the country.

With the recession hitting Canada's manufacturing sector in Ontario and Quebec hard, unions and other groups are pressing Ottawa hard to protect jobs and Canada's interests as the global recession leads to restructuring in resources and primary industries.

Canada's big steelmakers -- the former Stelco, Dofasco, Algoma Steel and Ipsco, have all been acquired in recent years by foreign companies in an earlier wave of consolidation in that sector.

Before that, Toronto-based mining giants Inco Ltd. and Falconbridge were acquired by Brazilian and Swiss resources companies.

Both companies, Vale Inco and Xstrata Nickel, have also recently cut jobs at operations in Canada.