Stelco Holdings recently announced the termination of 85 employees, following a prior notice of 90 layoffs, as confirmed by union leader Ron Wells. The company, a U.S.-owned steelmaker, cited the ongoing Canada-U.S. trade war, technological advancements, and market dynamics as reasons for the temporary layoffs affecting up to 500 workers in Hamilton and Nanticoke, Ontario.
Statistics Canada data reveals a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July. United Steelworkers Local 1005 President Ron Wells, who has been with Stelco for 47 years, noted that the workforce at Stelco was around 14,000 when he first joined the company. The industry has evolved to require fewer workers for steel production, reflecting a more streamlined process.
Cleveland-Cliffs, the Ohio-based parent company of Stelco and North America’s largest flat-rolled steel producer, saw its workforce decrease from around 30,000 employees to approximately 25,000 between 2024 and 2025. This reduction included 600 job cuts in Dearborn, Michigan, due to soft demand from North American automakers. Subsequently, another 600 job cuts occurred in Minnesota to align raw ore output with reduced blast furnace demand.
In response to the trade war and tariffs imposed by the U.S., Stelco announced up to 500 layoffs at its Ontario operations, leading to a dispute with the federal government over its obligations under the Investment Canada Act. Meanwhile, Algoma Steel issued layoff notices to about 1,000 workers in December, attributing the decision to U.S. tariffs affecting export competitiveness and a shift towards more environmentally friendly and less labor-intensive production methods.
Industry stakeholders have raised concerns about the influx of cheaper foreign steel imports, with calls for increased tariff-rate quotas to protect Canadian producers from market distortions. Despite challenges, there have been positive indications in the steel market, with an uptick in spot prices for galvanized steel, providing some optimism for the future of the industry.
As negotiations and potential legal battles loom, union leader Ron Wells remains hopeful for worker recalls, believing that the current layoffs are temporary and that a resolution to the trade disputes will lead to a return to work for affected employees.