Stelco Holdings implemented workforce reductions, affecting 85 employees last week, revealed union leader Ron Wells. The previous week, the company issued 90 layoff notices, as part of its plan to potentially lay off up to 500 employees in Hamilton and Nanticoke, Ontario. These actions are attributed to the impact of the Canada-U.S. trade tensions, along with technological advancements and changing demand patterns, leading to a decline in the steel industry workforce.
Statistics Canada reports a significant decline in direct employment within Canada’s primary steel manufacturing sector, dropping from almost 29,000 workers in 2003 to approximately 14,000 as of July. Wells, who has been with Stelco for 47 years and is the president of United Steelworkers Local 1005, noted that the Stelco workforce was around 14,000 strong when he first started.
The shift towards streamlined processes and increased efficiency has led to the need for fewer employees to produce a ton of steel, as highlighted by Wells in an interview with CBC News. The total workforce of Cleveland-Cliffs, the parent company of Stelco, decreased from about 30,000 employees to around 25,000 between December 31, 2024, and December 31, 2025, with layoffs in various locations due to factors such as soft demand from automakers.
Following the imposition of tariffs by U.S. President Donald Trump on certain steel and aluminum imports from Canada, Stelco announced up to 500 layoffs at its Ontario operations, sparking a dispute with the federal government regarding its obligations under the Investment Canada Act.
Apart from Stelco, other steelworkers in Ontario are facing uncertain job prospects. Algoma Steel issued layoff notices to approximately 1,000 workers in December, blaming U.S. tariffs for affecting its export competitiveness and signaling a transition to more environmentally friendly production methods.
Calls have been made to address the influx of cheaper foreign steel imports, with concerns raised about the impact on the Canadian steel industry. Industry stakeholders are advocating for increased tariff-rate quotas to protect domestic producers from foreign competition.
A forecast by research firm Wood Mackenzie indicates differing trajectories for the steel industries in the U.S. and Canada, with the U.S. expected to see production growth while Canada faces challenges related to tariffs and trade disruptions.
Despite the current challenges, there is optimism for a resolution to the trade issues and hope for the laid-off workers to be recalled once the situation stabilizes, according to Wells. The evolving dynamics in the steel industry are prompting stakeholders to seek solutions to safeguard the interests of Canadian steelworkers and the industry as a whole.
