Stelco Lays Off 500 Workers Amid Nationalization Calls
Stelco is idling its Hamilton finishing operations and cutting 500 jobs, sparking legal threats from the Canadian government and calls for nationalization by the NDP.
Steel producer Stelco Inc. is proceeding with the layoff of approximately 500 workers and the idling of its Hamilton finishing operations. President Paul Simon attributed the move to a 58 percent plunge in cold-rolled and coated steel exports to the United States compared to pre-trade-war levels, noting that foreign imports now account for 45 percent of Canadian demand.
Canadian Industry Minister Mélanie Joly has threatened legal action, asserting that the layoffs may violate binding employment commitments made by Stelco's U.S.-based owner, Cleveland-Cliffs, during its 2024 acquisition. Cleveland-Cliffs has rejected these claims, citing Investment Canada Act guidelines to argue that the cuts do not violate any agreements. Stelco also rejected federal financial aid offers to retain workers, with Simon describing the assistance as a last-ditch effort that fails to address the lack of orders.
In response to the crisis, the federal and provincial New Democratic Party (NDP) are urging Prime Minister Mark Carney and Premier Doug Ford to nationalize the company. NDP leaders Marit Stiles and Avi Lewis argue that public ownership is necessary to protect the domestic manufacturing base from U.S. tariffs. While Premier Doug Ford previously suggested the province might buy the company, his government is currently maintaining a wait-and-see approach until after the U.S. mid-term elections.
