Stelco Holdings recently terminated 85 employees, as confirmed by union leader Ron Wells. Prior to that, the company had issued 90 layoff notices.
Despite attributing the layoff of up to 500 workers in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, Stelco Holdings, a U.S.-owned steelmaker, acknowledges that factors such as new technologies and evolving demand are contributing to the reduction in the industry’s workforce. Statistics Canada reports a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to around 14,000 workers as of July.
Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, mentioned that the company’s workforce was approximately 14,000 strong when he first joined. He highlighted the trend towards more streamlined operations in the steel-making process, requiring fewer personnel.
According to U.S. regulatory filings, Cleveland-Cliffs, the parent company of Stelco and a major flat-rolled steel producer in North America, reduced its workforce from about 30,000 employees to roughly 25,000 between Dec. 31, 2024, and Dec. 31, 2025. This downsizing included layoffs in Michigan and Minnesota due to soft demand from automakers and adjustments in raw ore output to align with reduced blast furnace demand.
In response to the imposition of tariffs on Canadian steel and aluminum imports by U.S. President Donald Trump, Stelco announced up to 500 layoffs at its Ontario operations. This move triggered a dispute between the company and the federal government regarding Stelco’s commitments under the Investment Canada Act to retain a specific number of workers in Canada.
The challenges faced by Stelco’s workforce are mirrored in other Ontario steel companies. Algoma Steel issued layoff notices to about 1,000 workers, citing U.S. tariffs affecting export competitiveness. Similarly, ArcelorMittal Long Products Canada closed its wire-drawing facility in Hamilton as part of operational restructuring.
Industry stakeholders, including Stelco’s president and union leaders, are urging the government to address the influx of cheaper foreign steel imports that are impacting the domestic market. Concerns have been raised about the need to increase tariff-rate quotas to protect Canadian producers from competitive pressures.
The steel industry’s outlook differs between the U.S. and Canada, with projections indicating growth in U.S. steel production but challenges for Canadian producers amidst disrupted trade flows. Despite the current uncertainties, there is hope for a resolution to the trade issues, leading to potential rehiring of laid-off workers in the future.