Stelco Holdings recently implemented staff reductions, with 85 employees laid off last week and an additional 90 layoff notices issued the week before, as reported by union leader Ron Wells. The U.S.-owned steelmaker attributes the layoffs in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, technological advancements, and evolving market demands. Statistics Canada data reveals a decrease in direct employment in Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to around 14,000 workers as of July.
Wells, president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that the company’s workforce stood at approximately 14,000 employees when he joined. He emphasized the industry’s shift towards increased efficiency, stating that modern steel production requires fewer workers.
Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel producer, experienced a reduction in its workforce from about 30,000 employees to roughly 25,000 from December 31, 2024, to December 31, 2025. This downsizing was partly driven by soft demand from North American automakers, leading to layoffs in Michigan and Minnesota.
Stelco’s announcement of up to 500 layoffs following U.S. President Donald Trump’s imposition of tariffs on Canadian steel imports prompted a dispute between the company and the Canadian government regarding compliance with the Investment Canada Act. The broader steel industry in Ontario is also grappling with uncertainty, with Algoma Steel and ArcelorMittal Long Products Canada announcing layoffs and facility closures.
Efforts to address the impact of cheaper foreign steel imports on Canadian producers have been highlighted, with calls for increased tariff-rate quotas to protect domestic steel manufacturers. Meanwhile, industry forecasts indicate contrasting trajectories for the U.S. and Canadian steel sectors, with challenges persisting for Canadian producers amid disrupted trade flows.
Despite the current challenges, Wells remains optimistic about the industry’s future and hopes for a resolution to the trade dispute that would enable affected workers to return to their jobs.