U.S.-owned Stelco announced plans to lay off up to 500 workers in Hamilton and Nanticoke, Ontario as it idled its cold mill and coating departments, another major hit for Canadian steelmakers as the number of steelmaking jobs in Canada have nearly halved since 2003.
The steelmaker, which is owned by Cleveland-Cliffs, North America’s largest producer of flat-rolled steel, insists the move is a temporary consequence of the ongoing trade war between the U.S. and Canada.
The layoffs sparked response from the Canadian government as Stelco is tied to obligations under the Investment Canada Act to maintain a certain number of workers in Canada. These were the conditions of purchase in 2024. Industry Minister Mélanie Joly said that the company cannot use changing market conditions to breach its commitments, the outcome of which could result in financial penalties or forced divestiture by the U.S. owners if the layoffs continue.
Conversely, the company is accusing the government of not doing enough to protect the Canadian market from cheap foreign imports.
“This whole thing is a manufactured crisis by Cleveland-Cliffs to put pressure on our government to go get a trade deal,” said Ron Wells, President of United Steelworkers Local 1005. “And quite frankly, we don’t feel appreciated. We don’t appreciate being used as pawns in this game.”
The union welcomes government intervention but worries that the legal process will take too long at the expense of its members.
