Cleveland-Cliffs has reported that Stelco’s performance in the third quarter of this year was the best since it took over the company in 2024. However, despite this positive outlook, significant layoffs are underway for Stelco employees in Hamilton and Nanticoke, Ontario.
The CEO of Cleveland-Cliffs, Lourenco Goncalves, highlighted the notable progress in Stelco’s hot-rolled market segment, emphasizing the improvements seen in the Canadian market. Goncalves also stressed the importance of government intervention to address the oversupply of galvanized steel in Canada.
Stelco Holdings Inc. announced plans to halt operations at a section of its Hamilton plant to ensure the company’s viability amid challenges from U.S. tariffs impacting sales. Layoffs affecting 333 employees in Hamilton and up to 50 in Nanticoke have been confirmed by union leaders.
Goncalves commended U.S. President Donald Trump’s trade policies during an earnings call, stating they facilitate investments in local communities and domestic production. He attributed the success of the hot-rolled steel business to the Canadian government’s tariff-rate quota system that regulates imports.
Despite the layoffs being a temporary measure until a trade agreement is reached between Canada and the U.S., the Canadian government is evaluating legal actions against Cleveland-Cliffs for potential breaches of commitments made during the acquisition of Stelco.
Union representatives expressed concerns over the layoffs, criticizing the perceived inconsistency in messaging from Goncalves regarding Stelco’s profitability and operational decisions. They urged the government to uphold regulations to safeguard Canadian employment interests.
The ongoing developments underscore the complex dynamics within the steel industry, where economic factors, government policies, and corporate decisions intersect, impacting the workforce and industry sustainability.