Stelco Holdings recently implemented layoffs, with 85 employees let go last week and 90 notices issued the week prior, as confirmed by union leader Ron Wells. The U.S.-owned steelmaker attributes the layoffs, which could affect up to 500 workers in Hamilton and Nanticoke, Ont., to the ongoing Canada-U.S. trade conflict and the industry’s adoption of new technologies alongside shifting demand patterns.
Statistics Canada data reveals a decline in direct employment in Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July. Wells, who is the president of United Steelworkers Local 1005 and has been with Stelco for 47 years, recalls that the company had a workforce of around 14,000 employees when he first joined.
The steel industry’s workforce reduction trend extends beyond Stelco. Cleveland-Cliffs, the parent company of Stelco and the largest flat-rolled steel producer in North America, saw its workforce decrease from about 30,000 employees to roughly 25,000 between the end of 2024 and 2025. This downsizing included layoff actions in Michigan and Minnesota due to soft demand from automakers and adjustments in raw ore output to align with reduced blast furnace demand.
In the aftermath of President Donald Trump’s imposition of tariffs on steel and aluminum imports from Canada, Stelco announced up to 500 layoffs at its Ontario facilities, sparking a dispute with the Canadian government regarding compliance with the Investment Canada Act worker retention requirements. The challenges faced by Stelco are echoed across the Ontario steel sector, with Algoma Steel and ArcelorMittal Long Products Canada also grappling with layoffs and facility closures.
Industry stakeholders, including Stelco’s president, advocate for measures to address the influx of cheaper foreign steel imports that impact the competitiveness of Canadian producers. Calls for increased tariff-rate quotas to safeguard the local industry from foreign competition have been made to prevent price dilution in the Canadian market.
An industry forecast by research firm Wood Mackenzie emphasizes the contrasting prospects of the U.S. and Canadian steel sectors, projecting a rise in U.S. steel production despite shrinking domestic demand, while Canadian producers face challenges due to disrupted trade flows and market pressures.
Despite the uncertainties, stakeholders like Wells remain hopeful for a resolution to the trade issues and potential worker recalls, emphasizing the temporary nature of the current layoffs and expressing optimism for a positive outcome in the near future.
