Stelco Holdings recently downsized its workforce by letting go of 85 employees, as reported by union leader Ron Wells. Prior to this, the company had issued 90 layoff notices.
Although the U.S.-owned steelmaker attributes the layoffs of up to 500 workers in Hamilton and Nanticoke, Ont., to the Canada-U.S. trade war, advancements in technology and shifting market demands are also contributing to the reduction in the industry’s labor force.
Statistics from Statistics Canada reveal a decline in direct employment in Canada’s primary steel manufacturing sector from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July this year.
Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that when he first joined the company, the workforce at Stelco alone was around 14,000 strong. He emphasized the current trend of requiring fewer workers to produce a ton of steel due to streamlined processes.
According to U.S. regulatory filings, Cleveland-Cliffs, the Ohio-based parent company of Stelco and the largest flat-rolled steel producer in North America, saw its total workforce decrease from about 30,000 employees to roughly 25,000 between the end of 2024 and 2025. This reduction included layoffs in Michigan and Minnesota due to factors like soft demand from automakers and adjustments in raw ore output to align with market conditions.
The imposition of tariffs on steel and aluminum imports from Canada by U.S. President Donald Trump led to Stelco announcing the potential layoff of 500 workers at its Ontario facilities, sparking a dispute with the federal government over compliance with the Investment Canada Act.
Apart from Stelco, other steelworkers in Ontario are also facing job uncertainties. Last year, Algoma Steel issued layoff notices to about 1,000 employees, attributing the decision to U.S. tariffs affecting its competitiveness in exports and a shift towards more environmentally friendly and efficient production methods.
Addressing the influx of cheaper foreign steel imports, industry stakeholders like Wells and Stelco’s president have expressed concerns about the impact on Canadian producers. They advocate for measures like increased tariff-rate quotas to protect domestic steel manufacturers from foreign competition, which they believe undermines local pricing.
The steel industry’s outlook differs between the U.S. and Canada, with forecasts indicating growth in U.S. steel production despite shrinking demand, while Canadian producers face challenges in maintaining export volumes and capacity utilization due to disrupted trade flows and market dynamics.
Despite the current uncertainties, there is optimism among stakeholders for a resolution to the trade situation and a potential recall of laid-off workers, with hopes pinned on negotiations and market improvements to stabilize the industry and safeguard Canadian jobs.
