Stelco Holdings has implemented workforce reductions recently, with 85 employees laid off last week and 90 more the week before, as confirmed by union leader Ron Wells. The U.S.-owned steelmaker attributes these layoffs, affecting up to 500 workers in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, alongside technological advancements and shifting demand patterns that are contributing to a downsized industry workforce.
Statistics Canada data shows a decline in direct employment within Canada’s primary steel manufacturing sector, dropping from nearly 29,000 employees in 2003 to approximately 14,000 as of July. United Steelworkers Local 1005 President Wells, who has been with Stelco for 47 years, notes that when he started, the company’s workforce alone stood at around 14,000 individuals.
The trend of streamlining operations to increase efficiency is evident, with Wells explaining that modern steel production requires fewer workers per ton compared to the past. Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel producer, saw its total workforce decrease from about 30,000 to roughly 25,000 between Dec. 31, 2024, and Dec. 31, 2025. The company’s restructuring included layoffs in Dearborn, Mich., and Minnesota due to reduced demand from North American automakers.
Following the imposition of tariffs on steel and aluminum imports from Canada by U.S. President Donald Trump, Stelco announced up to 500 layoffs at its Ontario facilities. This led to ongoing disputes between the company and the Canadian government regarding Stelco’s obligations under the Investment Canada Act to maintain a specific number of Canadian workers.
Apart from Stelco, other steelworkers in Ontario are also facing uncertain job prospects. Algoma Steel issued layoff notices to about 1,000 employees, attributing the move to U.S. tariffs impacting its export competitiveness and plans to transition to greener electric-arc furnace production. Additionally, ArcelorMittal Long Products Canada shut down its Parkdale wire-drawing facility in Hamilton, citing economic challenges and market conditions.
Industry stakeholders are calling for measures to address the influx of cheaper foreign steel imports, with requests for increased tariff-rate quotas to protect Canadian producers from international competition. The steel industry outlook differs between the U.S. and Canada, with Wood Mackenzie forecasting growth in U.S. steel production despite shrinking domestic demand, while Canadian producers face challenges in export volumes and capacity utilization.
As negotiations and tensions continue between stakeholders, there is cautious optimism that the current layoffs may be temporary, pending resolution of trade issues. Despite uncertainties, there is hope that affected workers will be recalled once the trade situation stabilizes, providing them with job security in the future.