Stelco Holdings terminated 85 employees last week, as confirmed by union leader Ron Wells. The week prior, 90 layoff notices were issued by the company, which claims that the plan to lay off up to 500 workers in Hamilton and Nanticoke, Ont., is a temporary measure due to the Canada-U.S. trade war, alongside technological advancements and demand changes leading to a reduction in the steel industry workforce.
Statistics from Canada indicate a decline in direct employment in the primary steel manufacturing sector from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July. Wells, the president of United Steelworkers Local 1005 and a 47-year Stelco veteran, mentioned that the workforce at Stelco was around 14,000 strong when he began working for the company.
The workforce of Cleveland-Cliffs, the Ohio-based parent company of Stelco and the largest flat-rolled steel producer in North America, decreased from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025. This year saw significant job cuts, including 600 layoffs in Dearborn, Mich., due to soft demand from North American automakers, leading to further cuts in Minnesota to align with reduced blast furnace demand.
In response to the tariffs imposed by U.S. President Donald Trump, Stelco announced up to 500 layoffs at its Ontario operations, sparking a dispute between the company and the federal government concerning Stelco’s obligations under the Investment Canada Act to maintain a specific number of workers in Canada.
Other steelworkers in Ontario face job uncertainty, with Algoma Steel issuing layoff notices to about 1,000 workers, blaming U.S. tariffs for impacting its export competitiveness and fast-tracking its move to greener and less labor-intensive production methods. Additionally, ArcelorMittal Long Products Canada permanently closed its Parkdale wire-drawing facility in Hamilton in June 2025.
Calls have been made to address the influx of cheaper foreign steel imports, with concerns raised by Stelco’s president about the market share dominance of imported steel products. Wells highlighted the need for increased tariff-rate quotas to safeguard Canadian producers from foreign competition.
A forecast by research firm Wood Mackenzie contrasts the steel industry in the U.S. with Canada, predicting a rise in U.S. steel production while Canadian producers face challenges due to disrupted trade flows. Wells remains hopeful that Stelco will recall the laid-off workers amid pending negotiations and trade issues.
The situation remains uncertain, with stakeholders expressing concerns about the impact on Canadian steelworkers and the future of the steel industry in the region.