Stelco Holdings Inc. announced its intention to temporarily shut down a section of its Hamilton facility to safeguard the company’s future amidst pressure from U.S. tariffs impacting its sales. The move is expected to affect around 500 employees. According to a memo from the company obtained by CBC News, the cold-rolled and coated operations at the Hamilton Works plant will be indefinitely idled, with the winding-down process starting on October 9.
Ron Wells, president of United Steelworkers Local 1005, estimates that approximately 350 steelworkers will face layoffs. He expressed concerns about the lack of clarity regarding the duration of the layoffs and emphasized the importance of following seniority in the layoff process. Stelco assured that the idling of these operations will not hamper its capacity to provide hot-rolled steel products.
The decision to idle the operations was described as unfortunate but necessary by Stelco’s vice-president of sales, Frederic Fafard, in the memo. Fafard highlighted the challenges faced by the Canadian steel industry due to trade disruptions, leading to a shrinking market for cold-rolled and coated products. The company’s acquisition by Cleveland-Cliffs in a $3.4 billion deal in November 2024 was also mentioned.
In response to the layoffs, Industry Minister Mélanie Joly expressed disappointment, mentioning that the government had offered support to help Stelco mitigate the impact of the tariffs. Meanwhile, U.S. President Trump celebrated a new steel investment in Iowa as a result of American tariffs on imported steel, causing concern among Canadian steelworkers.
Hamilton Mayor Andrea Horwath vowed to advocate for the commitments made by Stelco and Cleveland-Cliffs to the city’s workers. She emphasized the ongoing fight to ensure that promises are kept, especially considering the support for tariffs by the company’s leadership. The situation was described as challenging by Blair Dickerson, president of the Canadian Steel Producers Association, urging for solutions to protect the industry and jobs amid the trade tensions.
