Stelco Holdings recently downsized its workforce, with 85 employees laid off last week and 90 the week prior, as reported by union leader Ron Wells. The company, owned by the U.S., cited the Canada-U.S. trade tensions as a reason for the layoffs, aiming to reduce up to 500 positions in Hamilton and Nanticoke, Ontario. This move comes as the steel industry faces challenges from evolving technologies and demand shifts alongside tariff impacts.
Statistics Canada data reveals a decline in direct employment within Canada’s primary steel manufacturing sector from around 29,000 workers in 2003 to approximately 14,000 employees in July. Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that the company’s workforce was once robust at about 14,000 workers.
The industry trend towards efficiency is evident, with Wells highlighting the reduced labor requirements for steel production today, making operations more streamlined. Cleveland-Cliffs, the parent company of Stelco and a major steel producer in North America, experienced a workforce reduction from 30,000 to 25,000 between 2024 and 2025, partly attributed to soft demand from automakers.
In response to the layoffs, discussions have ensued between Stelco and the federal government regarding the company’s commitments under the Investment Canada Act to maintain a certain workforce level. The challenges faced by Stelco are mirrored in the broader Ontario steel industry, with Algoma Steel and ArcelorMittal Long Products Canada also announcing significant job cuts in recent times.
Calls have been made to address the influx of cheaper foreign steel imports, with concerns raised by industry stakeholders like Wells about the impact on Canadian producers. Efforts to shield domestic production from overseas competition, including potential tariff adjustments, are being advocated for to safeguard the industry’s viability.
Amidst the uncertainties, hopes remain for a resolution to the trade disputes and a potential recall of laid-off workers. The evolving landscape of the steel market in the U.S. and Canada presents contrasting scenarios, with challenges persisting for Canadian producers amidst shifting trade dynamics.