Stelco Holdings recently implemented layoffs affecting 85 employees, as confirmed by union leader Ron Wells. The company had issued 90 layoff notices the week before. While the U.S.-owned steelmaker attributes the layoffs in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, advancements in technology and shifting demand patterns are also contributing to downsizing the industry’s workforce.
Statistics Canada reports a decline in direct employment within Canada’s primary steel manufacturing sector, dropping from around 29,000 workers in 2003 to approximately 14,000 as of July. Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that the workforce at Stelco was about 14,000 strong when he first joined.
The transformation in steel production processes has led to more streamlined operations with fewer employees required to produce a ton of steel, according to Wells. The total workforce at Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel producer, decreased from roughly 30,000 to 25,000 employees between 2024 and 2025 due to various factors, including soft demand from North American automakers.
Stelco’s announcement of up to 500 layoffs at its Ontario operations following the imposition of tariffs by U.S. President Donald Trump has sparked tensions between the company and the Canadian government regarding its obligations under the Investment Canada Act. The steel industry in Ontario is facing uncertainties, with Algoma Steel and ArcelorMittal Long Products Canada also making significant workforce adjustments.
Calls have been made to address the influx of cheaper foreign steel imports affecting Canadian producers, with efforts to enhance tariff-rate quotas to protect domestic steel markets. The steel industry outlook differs between the U.S. and Canada, with forecasts indicating challenges for Canadian producers amidst disrupted trade flows and market conditions.
Despite the current layoffs, Wells remains optimistic about a potential resolution to the trade situation, hoping for the recall of laid-off workers in the near future. The ongoing issues in the steel industry highlight the complexities and challenges faced by workers and stakeholders in navigating market dynamics and trade policies.