Stelco Holdings Inc. announced its decision to temporarily shut down a portion of its Hamilton facility to safeguard the company’s future amidst declining sales due to U.S. tariffs. The move is expected to affect around 500 employees. The company disclosed in a memo obtained by CBC News that it will indefinitely suspend its cold-rolled and coated operations at the Hamilton Works plant, with operations winding down starting on October 9.
Ron Wells, president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will face layoffs. He expressed concerns about the uncertainty surrounding the duration of the layoffs and emphasized the importance of following seniority rules during the process. Stelco assured that the idling of operations will not impact its hot-rolled steel product supply.
The company’s vice-president of sales, Frederic Fafard, stated in the memo that the decision was necessary to address the challenges in the cold-rolled and coated products market caused by trade disruptions affecting the Canadian steel industry. The imposition of tariffs by U.S. President Donald Trump in June has significantly impacted Stelco’s market for these products, leading to reduced demand and heightened import levels.
Cleveland-Cliffs, an Ohio-based company, acquired Stelco for $3.4 billion in a cash-and-stock deal in November 2024. This acquisition included commitments to maintain the workforce levels. However, Wells expressed disappointment over the layoffs, highlighting the commitments made during the acquisition.
Industry Minister Mélanie Joly criticized Stelco’s decision to lay off workers despite the government’s readiness to provide financial support to sustain operations and protect jobs. She emphasized the government’s commitment to defending Canadian industry and securing the supply chain.
Meanwhile, U.S. President Trump announced a new steel plant investment in Iowa, citing the success of American tariffs on imported steel. This development has raised concerns among Canadian steelworkers, prompting discussions on protective measures and trade strategies to mitigate the impact on workers. Experts attribute the layoffs to the ongoing trade tensions with the U.S. and the influx of foreign steel products into Canada.
Hamilton Mayor Andrea Horwath vowed to advocate for the workers affected by the layoffs and urged Stelco and Cleveland-Cliffs to honor their commitments to the local workforce. The mayor emphasized the importance of continuing the fight to protect jobs and uphold the interests of the community.