Stelco Holdings recently implemented layoffs affecting 85 employees, as reported by union leader Ron Wells. Prior to this, the company had issued 90 layoff notices. The U.S.-owned steelmaker attributes the layoffs, which could reach up to 500 workers in Hamilton and Nanticoke, Ont., to the impact of the Canada-U.S. trade war, alongside technological advancements and evolving demand patterns, leading to a reduction in the industry’s workforce.
Data from Statistics Canada shows a decline in direct employment within Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July. Wells, who has been with Stelco for 47 years and currently serves as president of United Steelworkers Local 1005, highlighted that the company’s workforce was around 14,000 strong when he first joined.
The steel industry is experiencing a shift towards efficiency, with fewer workers required for steel production. This trend has been emphasized by Wells, noting that the process has become more streamlined in recent times. Cleveland-Cliffs, the Ohio-based owner of Stelco and the largest producer of flat-rolled steel in North America, saw a reduction in its total workforce from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025.
In response to the layoffs, Stelco is facing scrutiny over its obligations under the Investment Canada Act to maintain a specific number of workers in Canada. The company’s workforce reductions have sparked tensions with the federal government. The situation is reminiscent of job uncertainties faced by other steelworkers in Ontario, such as Algoma Steel announcing layoffs impacting about 1,000 workers and ArcelorMittal Long Products Canada shutting down its wire-drawing facility in Hamilton.
Efforts to address the influx of cheaper foreign steel imports have been raised, with calls for increased tariff-rate quotas to safeguard Canadian producers from external competition. Industry dynamics have shifted, with the U.S. steel industry projected to grow despite challenges, while Canadian producers are facing pressures on export volumes and capacity utilization.
Despite the current challenges, there is optimism for a resolution to the trade situation and potential recalls for laid-off workers. Wells believes the layoffs are temporary and anticipates a positive outcome in the near future for the affected employees. The ongoing negotiations and potential legal battles between stakeholders underscore the complexity of the situation within the steel industry.