Stelco Holdings Inc. announced on Monday its intention to halt operations at a section of its Hamilton plant to safeguard the company’s future amidst reduced sales due to U.S. tariffs. The decision is expected to affect around 500 employees. The company revealed plans to indefinitely idle its cold-rolled and coated operations at the Hamilton Works plant, with the process set to commence on October 9.
Ron Wells, the president of United Steelworkers Local 1005, anticipates that approximately 350 steelworkers will face temporary layoffs. He emphasized the need for transparency in the layoff process and expressed concerns about the uncertainty surrounding the duration of the layoffs and their impact on employees, especially with the holiday season approaching.
Stelco assured that the production of hot-rolled steel products will remain unaffected by the operational changes. Frederic Fafard, Stelco’s vice-president of sales, highlighted that the decision was regrettable but necessary to address the challenges faced by the company in the cold-rolled and coated products market, exacerbated by ongoing trade disruptions affecting the Canadian steel industry.
The imposition of up to 50% tariffs on select steel and aluminum imports from Canada by U.S. President Donald Trump in June has significantly constrained Stelco’s market for cold-rolled and galvanized products, with import levels remaining high. The company’s concerns were reiterated in a memo by Fafard citing the impact of trade crises on their market position.
Cleveland-Cliffs, an Ohio-based company, acquired Stelco in a $3.4 billion deal in November 2024. Stelco executives had previously pledged to maintain the existing unionized workforce, emphasizing the importance of employee retention. However, the recent layoffs have raised questions about the company’s commitment to these assurances.
Furthermore, Industry Minister Mélanie Joly criticized Stelco’s decision to lay off workers despite offers of financial support from the Canadian government to mitigate the effects of U.S. tariffs. The minister expressed disappointment over the rejection of assistance and stressed the government’s determination to protect Canadian industry and jobs.
In response to the layoffs, Hamilton Mayor Andrea Horwath vowed to advocate for the fulfillment of commitments made by Stelco and Cleveland-Cliffs to the city’s workers. The mayor emphasized the ongoing fight to safeguard jobs and uphold promises made to the local workforce.