Stelco Holdings recently cut 85 jobs, as reported by union leader Ron Wells. The company had issued 90 layoff notices the week prior. The U.S.-owned steelmaker attributes the layoffs to the Canada-U.S. trade war, technological advancements, and shifting demand patterns, aiming to lay off up to 500 workers in Hamilton and Nanticoke, Ontario.
Statistics Canada reveals a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to about 14,000 as of July. Wells, who has been with Stelco for 47 years and is the president of United Steelworkers Local 1005, recalls a time when Stelco’s workforce alone stood at approximately 14,000 employees.
The industry trend towards efficiency is evident, with Wells noting that steel production now requires fewer workers and operates in a more streamlined manner. Cleveland-Cliffs, the owner of Stelco and North America’s largest flat-rolled steel producer, reduced its workforce from around 30,000 to about 25,000 between December 31, 2024, and December 31, 2025. Job cuts this year included 600 layoffs in Dearborn, Michigan, and additional cuts in Minnesota due to reduced demand from North American automakers.
Stelco’s decision to lay off up to 500 employees at its Ontario operations following U.S. tariffs triggered a dispute with the federal government over its obligations under the Investment Canada Act. Other steelworkers in Ontario also face uncertain job prospects, with Algoma Steel issuing layoff notices to about 1,000 workers and ArcelorMittal Long Products Canada closing its wire-drawing facility in Hamilton.
Efforts are underway to address challenges posed by cheaper foreign steel imports. Stelco’s president has urged Ottawa to increase tariff-rate quotas to protect Canadian producers from competition. A research firm’s forecast highlights the contrasting outlook for the steel industry in the U.S. and Canada, with U.S. steel production expected to rise while Canadian producers face export pressures.
Despite the current layoffs, there is optimism that the situation is temporary, with hopes for a resolution to the trade issues. Wells believes that Stelco will eventually recall the laid-off workers once the trade situation stabilizes, expressing confidence in a positive outcome for the affected employees.