Stelco Holdings recently downsized its workforce by letting go of 85 employees, as reported by union leader Ron Wells. Prior to this, the company had issued 90 layoff notices. The U.S.-owned steelmaker attributes these layoffs, affecting up to 500 workers in Hamilton and Nanticoke, Ontario, to the ongoing Canada-U.S. trade conflict, technological advancements, and changing market demands, which have collectively led to a reduction in the industry’s workforce.
Statistics Canada reveals a significant decline in direct employment within Canada’s primary steel manufacturing sector, dropping from nearly 29,000 workers in 2003 to approximately 14,000 employees as of July. Wells, who serves as the president of United Steelworkers Local 1005 and has been with Stelco for 47 years, noted that the company’s workforce stood at around 14,000 when he first joined.
The evolution of steel production processes has resulted in a more efficient operation, requiring fewer personnel to produce a ton of steel. Cleveland-Cliffs, the parent company of Stelco and North America’s leading flat-rolled steel producer, experienced a workforce reduction from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025.
In response to the impact of the trade war, Stelco announced up to 500 layoffs at its Ontario operations following the imposition of tariffs by U.S. President Donald Trump. This move triggered tensions between the company and the Canadian government regarding Stelco’s commitments under the Investment Canada Act to maintain a specific workforce level in the country.
Stelco is not the only steel company facing workforce uncertainties in Ontario. Algoma Steel issued layoff notices to approximately 1,000 employees in December, blaming U.S. tariffs for hindering its export competitiveness. The company also disclosed plans to expedite its transition to greener and less labor-intensive electric-arc furnace production.
Efforts to address the influx of cheaper foreign steel imports have been highlighted, with calls for increased tariff-rate quotas to protect Canadian steel producers. The steel industry outlook in the U.S. contrasts with that of Canada, with projections indicating a rise in U.S. steel production but mounting challenges for Canadian producers due to disrupted trade flows.
Despite the current challenges, there is optimism among industry stakeholders for a resolution to the trade conflicts and a potential rebound in the steel market. With ongoing negotiations and a possible courtroom confrontation looming between Cleveland-Cliffs and the Canadian government, there is a sense of hope among workers for the eventual reinstatement of those laid off as the industry navigates through these turbulent times.