Algoma Steel in Sault Ste. Marie, Ontario, has informed 1,000 workers about upcoming layoffs. The company is shutting down its blast furnace and coke making operations, leading to the decision. The layoffs will be effective in 16 weeks on March 23, 2026, as stated in an email from Algoma Steel.
The company emphasized that the closure and layoffs are necessary due to unprecedented tariffs imposed by the United States, which have significantly impacted the competitive environment. While some job cuts were expected with the transition to an electric arc furnace earlier than planned, Algoma Steel had received $500 million in government loans to safeguard employment amidst the challenges posed by U.S. tariffs.
Mike Da Prat, the president of United Steelworkers Local 2251 representing a majority of Algoma Steel workers, disclosed that 900 members received layoff notices. Da Prat mentioned uncertainties regarding the permanency of the job cuts, citing discrepancies in the list and receiving inquiries from concerned members. He pointed out that discussions about job reductions had been ongoing since contract negotiations in 2022, highlighting collaborative efforts between the union and the company to implement mitigation measures.
Bill Slater, president of Algoma Steel Local 2724’s office and professional union, anticipates around 150 members from his union to face layoffs. Slater expressed concern about the significant impact of mass layoffs occurring simultaneously and mentioned his prior request for employment-linked conditions on the federal loan to Algoma Steel, which was declined.
