Stelco Holdings Inc. announced its decision on Monday to halt operations at a section of its Hamilton plant to safeguard the company’s future amidst pressure from U.S. tariffs affecting its sales. The move is expected to impact approximately 500 employees. According to a memo obtained by CBC News, the company will indefinitely pause its cold-rolled and coated operations at its Hamilton Works facility, with the process scheduled to commence on October 9.
Ron Wells, the president of United Steelworkers Local 1005, estimates that around 350 steelworkers will face layoffs. He expressed concerns over the uncertainty surrounding the duration of the layoffs and the impact on the employees, especially with the approaching holiday season. Stelco reassured that the decision will not affect its ability to provide hot-rolled steel products.
Stelco’s vice-president of sales, Frederic Fafard, mentioned in the memo that the pause in operations is regrettable but necessary to address the challenges in the market for cold-rolled and coated products due to ongoing trade disruptions impacting the Canadian steel industry. The company cited the U.S. tariffs imposed by President Donald Trump in June, leading to a significant contraction in the market for these products while import levels remain high.
Cleveland-Cliffs, based in Ohio, acquired Stelco for $3.4 billion in a cash-and-stock deal in November 2024. The current situation has sparked disappointment among workers, especially as commitments made during the acquisition, including maintaining unionized employee numbers, are now in question.
Industry Minister Mélanie Joly criticized the layoffs, expressing disappointment in Stelco’s decision despite offers of financial support from the Canadian government to mitigate the impact of the tariffs. Meanwhile, U.S. President Trump highlighted a new $15 billion investment plan by Mesabi Metallics, signaling the success of American tariffs on steel imports.
Hamilton Mayor Andrea Horwath vowed to advocate for the commitments made to workers by Stelco and Cleveland-Cliffs and emphasized that the fight to protect jobs and the steel industry is far from over. The ongoing trade tensions and challenges in the steel sector call for collaborative efforts to find solutions and support affected workers.
