Stelco Holdings reduced its workforce by 85 employees last week, as reported by union leader Ron Wells. This follows the issuance of 90 layoff notices by the company the previous week.
The U.S.-based steelmaker attributes the layoffs of up to 500 workers in Hamilton and Nanticoke, Ont., to the ongoing Canada-U.S. trade conflict, alongside technological advancements and evolving demand patterns impacting the industry’s labor force. Statistics Canada data shows a decline in direct employment in Canada’s primary steel manufacturing sector from almost 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 company’s workforce numbered around 14,000 when he first joined. He highlighted the industry’s shift towards greater efficiency, stating, “To produce steel today, fewer workers are required, making operations more streamlined.”
Cleveland-Cliffs, the owner of Stelco and the largest flat-rolled steel producer in North America, saw its workforce decrease from about 30,000 to roughly 25,000 between December 31, 2024, and December 31, 2025. Various factors, including soft demand from automakers, led to job cuts, such as the idling of a blast furnace in Michigan and subsequent reductions in Minnesota.
Stelco announced the layoffs following U.S. President Donald Trump’s imposition of tariffs on certain steel and aluminum imports from Canada, sparking a dispute with the federal government over the company’s obligations under the Investment Canada Act. The steel industry in Ontario faces uncertainty, with Algoma Steel and ArcelorMittal Long Products Canada also experiencing layoffs and closures.
Industry stakeholders, including Stelco President Paul Simon and union leader Ron Wells, have raised concerns about the influx of cheaper foreign steel imports affecting the Canadian market. Calls for increased tariff-rate quotas to protect domestic producers have been made to address the competition imbalance.
Research firm Wood Mackenzie’s latest forecast indicates diverging trends in the U.S. and Canadian steel industries, with the U.S. poised for production growth while Canada faces challenges due to disrupted trade flows. Despite the current layoffs, there is optimism for a resolution to the trade tensions, leading to potential workforce recalls in the future.