Stelco Holdings announced the layoff of 85 employees last week, as confirmed by union leader Ron Wells. Prior to that, the company had issued 90 layoff notices. The U.S.-owned steelmaker attributes the layoffs of up to 500 workers in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war. However, factors such as new technologies and demand dynamics are also contributing to the reduction of the industry’s workforce.
Statistics Canada reports a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to around 14,000 workers as of July. Wells, president of United Steelworkers Local 1005, who has been with Stelco for 47 years, mentioned that when he started, the workforce at Stelco alone was approximately 14,000 strong.
The shift towards more streamlined processes in steel production has led to the need for fewer employees. Cleveland-Cliffs, the Ohio-based owner of Stelco and North America’s largest flat-rolled steel producer, saw its total workforce decrease from about 30,000 employees to approximately 25,000 between December 31, 2024, and December 31, 2025. The company attributed job cuts to soft demand from North American automakers.
In response to the trade war and tariff impacts, Stelco announced up to 500 layoffs at its Ontario operations. This decision has sparked a dispute between the company and the federal government regarding Stelco’s obligations under the Investment Canada Act to retain a certain number of workers in Canada.
Other steelworkers in Ontario are also facing job uncertainties, with Algoma Steel issuing layoff notices to about 1,000 workers last December. The company’s move to transition to greener and less labor-intensive production methods was accelerated due to U.S. tariffs affecting its export competitiveness.
Industry stakeholders are calling for action to address the influx of cheaper foreign steel imports, which are impacting domestic producers. There are concerns that the oversupply of foreign steel is diluting prices in Canada, affecting the competitiveness of local companies.
A recent forecast by research firm Wood Mackenzie highlights the challenges faced by the Canadian steel industry compared to the U.S. market. While U.S. steel production is projected to increase, Canadian producers are experiencing pressure on export volumes and capacity utilization due to disrupted trade flows.
Despite the current uncertainties, there is hope for a resolution to the trade situation and a potential return to work for laid-off employees. Stakeholders are closely monitoring developments and hoping for a positive outcome in the ongoing negotiations between industry players and government bodies.