Stelco Holdings recently cut its workforce by 85 employees, as confirmed by union leader Ron Wells. This follows a previous round of 90 layoffs. The steelmaker, owned by a U.S. company, attributes these layoffs in Hamilton and Nanticoke, Ont., to factors like the Canada-U.S. trade war, technological advancements, and changing demand patterns, leading to a reduction in the steel industry’s workforce.
Statistics Canada data reveals a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to around 14,000 employees as of July. Wells, president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that the company’s workforce was approximately 14,000 strong when he first joined.
The shift towards more efficient processes has resulted in a streamlined steel production requiring fewer workers, according to Wells. Similarly, Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel producer, experienced a decrease in its workforce from about 30,000 employees to around 25,000 between 2024 and 2025.
Continuing challenges in the steel industry saw Stelco announcing up to 500 layoffs in its Ontario operations following U.S. President Donald Trump’s implementation of tariffs on steel and aluminum imports from Canada. This move sparked a dispute between Stelco and the Canadian government over the company’s commitments under the Investment Canada Act to maintain a specific workforce level in Canada.
Apart from Stelco, other steelworkers in Ontario are also facing job uncertainties. Algoma Steel issued layoff notices to approximately 1,000 workers, citing U.S. tariffs affecting its export competitiveness. The company plans to transition to more environmentally friendly and less labor-intensive production methods.
Calls have emerged to address the influx of cheaper foreign steel imports, as highlighted by Stelco’s president. The push for increased tariff-rate quotas aims to protect Canadian steel producers from overseas competition, which could impact local prices and market conditions.
As negotiations between stakeholders unfold, the steel industry outlook differs between the U.S. and Canada. While U.S. steel production is projected to increase despite shrinking demand, Canadian producers are facing challenges due to disrupted trade flows and market pressures from tariffs.
Wells remains hopeful for the future, anticipating a resolution to the ongoing trade issues and a potential recall of laid-off workers by Stelco. Despite the uncertainties, he believes that the current layoffs are temporary and expects a positive outcome for Canadian steelworkers in the near future.
