Stelco Holdings recently cut 85 jobs, as confirmed by union leader Ron Wells. The company had issued 90 layoff notices the week before. The U.S.-owned steelmaker explained that the layoffs in Hamilton and Nanticoke, Ont., were temporary due to the Canada-U.S. trade war, advancements in technology, and shifting demand patterns impacting the industry’s workforce.
Statistics Canada data shows a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July. Wells, president of United Steelworkers Local 1005, who has been with Stelco for 47 years, recalled a workforce of about 14,000 when he started.
The shift towards more efficient processes in steel production has led to a reduced workforce requirement, according to Wells. The parent company of Stelco, Cleveland-Cliffs, also experienced a decrease in its workforce from around 30,000 employees to about 25,000 between 2024 and 2025.
The trade tensions between the U.S. and Canada, exacerbated by tariffs imposed by U.S. President Donald Trump, resulted in Stelco’s announcement of up to 500 layoffs. This move raised concerns about the company’s obligations under the Investment Canada Act to maintain a specific workforce level in the country.
Not only Stelco but other steel companies in Ontario are facing job uncertainties. Algoma Steel laid off about 1,000 workers, attributing it to U.S. tariffs affecting their export competitiveness and plans to transition to more eco-friendly electric-arc furnace production.
To address the influx of cheaper foreign steel imports impacting Canadian producers, calls have been made to increase tariff-rate quotas. The industry is facing challenges due to disrupted trade flows, leading to increased pressure on Canadian steel producers compared to their U.S. counterparts.
Despite the current situation, Wells remains hopeful that Stelco will rehire the laid-off workers once the trade issues are resolved. He believes the layoffs are temporary and anticipates a resolution soon to bring back the affected employees.