Stelco Holdings recently cut 85 jobs, following 90 layoffs the week prior, as confirmed by union leader Ron Wells. The company attributes these layoffs, part of a plan to potentially cut 500 positions in Hamilton and Nanticoke, Ont., to the ongoing trade tensions between Canada and the U.S., as well as evolving technologies and market dynamics that are reshaping the steel industry’s workforce.
Statistics Canada reports a decline in direct employment in Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to around 14,000 employees as of July. Wells, who has been with Stelco for 47 years and serves as president of United Steelworkers Local 1005, noted that when he started, the Stelco workforce alone consisted of about 14,000 individuals.
The shift towards more efficient processes in steel production has led to a reduction in the number of workers needed. This is a trend echoed by other steel companies, such as Cleveland-Cliffs, the U.S.-based owner of Stelco, which saw its workforce decrease from around 30,000 to approximately 25,000 employees between December 31, 2024, and December 31, 2025.
The recent layoffs at Stelco, influenced by factors like the trade war and decreased demand from automakers, have sparked tensions between the company and the Canadian government regarding job retention obligations under the Investment Canada Act. Similarly, other steel companies in Ontario, like Algoma Steel and ArcelorMittal Long Products Canada, have faced challenges, including layoffs and facility shutdowns.
Calls have been made to address the influx of cheaper foreign steel imports, with concerns raised about the impact on Canadian steel producers. Industry stakeholders are advocating for measures like increased tariff-rate quotas to protect domestic steel supply chains.
As negotiations continue between Stelco and the government, there is hope for a resolution that could lead to the rehiring of laid-off workers. Despite the uncertainties, many believe that the current trade situation will eventually be resolved, allowing affected employees to return to work.
