Stelco Holdings Inc. announced its intention to temporarily shut down a section of its Hamilton facility to ensure its survival amidst declining sales due to U.S. tariffs. The move will affect around 500 employees. The company disclosed in a memo obtained by CBC News that it will indefinitely halt its cold-rolled and coated operations at the Hamilton Works plant, with the shutdown process beginning on October 9.
Ron Wells, president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will face layoffs. He expressed concerns about the lack of clarity regarding the duration of the layoffs and the impact on employees, especially with the holiday season approaching. Stelco assured that the idling of operations in Hamilton would not affect its capacity to supply hot-rolled steel products.
The company cited the challenging market conditions for cold-rolled and coated products, driven by trade disruptions affecting the Canadian steel industry, as the reason for the shutdown. This decision aims to safeguard Stelco’s viability in the face of ongoing trade challenges. Since the acquisition of Stelco by Cleveland-Cliffs in a $3.4 billion deal in November 2024, the company has faced market pressures exacerbated by trade uncertainties.
In response to the layoffs, Industry Minister Mélanie Joly expressed disappointment, emphasizing the government’s readiness to support Stelco amid the tariff impact. However, Stelco’s rejection of assistance and the decision to proceed with layoffs drew criticism, with efforts pledged to protect Canadian industry and jobs.
Meanwhile, U.S. President Trump highlighted a new $15 billion investment by steelmaker Mesabi Metallics in Iowa as evidence of the success of American steel tariffs. The move raised concerns in Canada, with industry experts emphasizing the need for protective measures to support workers affected by trade dynamics.
Hamilton Mayor Andrea Horwath vowed to advocate for the commitments made by Stelco and Cleveland-Cliffs to uphold their promises to workers. She emphasized the ongoing challenges posed by trade disputes and the importance of safeguarding local jobs amidst industry transformations.