Stelco Holdings recently implemented layoffs affecting 85 employees, as reported by union leader Ron Wells. Preceding this, the company had issued 90 layoff notices. The U.S.-owned steelmaker attributes the layoffs, affecting up to 500 workers in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, along with technological advancements and changing demand dynamics impacting the steel industry’s workforce.
Statistics Canada data reveals a decline in direct employment in Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to approximately 14,000 workers by July. Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, highlighted that the company’s workforce stood at around 14,000 when he first joined.
The transition to more streamlined operations has enabled steel production with fewer personnel, as noted by Wells in an interview with CBC News. Cleveland-Cliffs, the owner of Stelco and North America’s largest flat-rolled steel producer, reduced its workforce from about 30,000 employees to roughly 25,000 between the end of 2024 and 2025.
Recent job reductions at Cleveland-Cliffs, including layoffs in Michigan and Minnesota, were driven by factors such as soft demand from automakers and adjustments in raw ore output to align with blast furnace demand. Stelco announced up to 500 layoffs in Ontario following the imposition of steel and aluminum tariffs by U.S. President Donald Trump.
The ongoing clash between Stelco and the federal government regarding worker retention obligations under the Investment Canada Act is intensifying. Other steelworkers in Ontario, like those at Algoma Steel and ArcelorMittal Long Products Canada, have also faced job uncertainties due to various factors, including tariffs and market conditions.
Efforts to address the influx of cheaper foreign steel imports have been highlighted by industry stakeholders. Calls for increased tariff-rate quotas to protect Canadian producers from foreign competition have been made, emphasizing the need to safeguard the local steel industry.
Analysts predict contrasting scenarios for the U.S. and Canadian steel industries, with the U.S. expected to see production growth while Canada faces challenges due to disrupted trade flows and export pressures. Despite these challenges, there is optimism regarding potential trade agreements and market improvements that could lead to workforce recalls.
The industry continues to navigate uncertainties, with hopes for a resolution to the trade situation and the eventual return of affected workers to their roles.