Algoma Steel has notified around 1,000 workers at its Sault Ste. Marie, Ontario plant about impending layoffs. The company stated in an email that these layoffs will take effect in 16 weeks on March 23, 2026, as part of shutting down its blast furnace and coke making operations. Algoma emphasized that these actions are crucial to safeguard its future amid significant market challenges and to advocate for a fair playing field in the Canadian steel industry.
The company attributed the need for layoffs to the substantial impact of unprecedented tariffs imposed by the United States, which have significantly transformed the competitive dynamics. Initially planned for 2027, the transition to an electric arc furnace will now occur in early 2026, hastening the need for layoffs. Algoma Steel recently secured $500 million in government loans to help preserve jobs amidst the challenges posed by U.S. tariffs.
Mike Da Prat, president of United Steelworkers Local 2251, disclosed that 900 of their members received layoff notices, although uncertainties persist regarding the permanency of these job cuts. Da Prat acknowledged the expected job reductions stemming from the shift to electric arc furnace since the 2022 contract negotiations. However, efforts are underway by the union and the company to implement mitigation strategies, such as a trades helper program for affected employees.
Bill Slater, president of Algoma Steel Local 2724’s office and professional union, anticipates that approximately 150 members could face layoffs, with expectations for these figures to fluctuate. Slater expressed concerns about the simultaneous impact of a substantial number of workers losing their jobs and highlighted his previous request to tie federal financial assistance to employment levels, which was not adopted.