Stelco Proceeds With 500 Layoffs Despite Canadian Government Threats
Stelco is laying off up to 500 Ontario workers amid a Canada-U.S. trade war, rejecting federal claims that the move breaches binding employment commitments.
Stelco Holdings Inc. is proceeding with layoffs of up to 500 workers at its Hamilton and Nanticoke facilities in Ontario, with cuts beginning October 11. The company plans to reduce its workforce by approximately 333 in Hamilton and 40 to 50 at the Lake Erie Works in Nanticoke, citing weak demand and a 50-per-cent U.S. tariff on Canadian steel exports.
Cleveland-Cliffs Inc., the U.S.-based parent company that acquired Stelco in 2024, defended the move as a temporary necessity caused by an untenable trade environment. CEO Lourenco Goncalves stated that workers could be brought back once a trade agreement is reached. However, the United Steelworkers union disputed claims that Hamilton workers could be absorbed at the Nanticoke plant, asserting that only 20 production jobs are available for over 400 affected employees.
Industry Minister Mélanie Joly issued an ultimatum demanding a plan to honor employment guarantees mandated under the Investment Canada Act. In a response letter, Stelco president Paul Simon rejected the allegation of a breach, arguing that the company's undertakings do not explicitly forbid layoffs. Prime Minister Mark Carney vowed to use all available powers to enforce the law, while Conservative Leader Pierre Poilievre called for the government to sue the company to enforce job guarantees.
Union leaders have criticized the layoffs as a manufactured crisis used for political leverage. Stelco has urged the Canadian government to impose stricter restrictions on foreign steel imports to restore the company's competitiveness.
