Stelco Holdings recently implemented workforce reductions, with 85 employees laid off last week and 90 the week prior, as confirmed by union leader Ron Wells. The company, owned by the U.S., cited the impact of the Canada-U.S. trade war, technological advancements, and market dynamics for the temporary layoffs affecting up to 500 workers in Hamilton and Nanticoke, Ontario.
Statistics Canada data reveals a decline in direct employment in Canada’s primary steel manufacturing industry from nearly 29,000 workers in 2003 to approximately 14,000 in July. Wells, president of United Steelworkers Local 1005 and a longstanding Stelco employee, noted that the workforce at Stelco was around 14,000 strong when he started with the company.
The shift towards efficiency in steel production has led to decreased labor requirements. Wells highlighted this trend, stating that the steelmaking process now requires fewer personnel and is more streamlined.
Cleveland-Cliffs, the Ohio-based owner of Stelco and the largest flat-rolled steel producer in North America, reported a reduction in its workforce from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025. The downsizing included layoffs in Michigan and Minnesota due to soft demand in the automotive industry.
Following the imposition of tariffs by U.S. President Donald Trump on certain steel and aluminum imports from Canada, Stelco announced up to 500 layoffs at its Ontario operations, sparking a dispute with the Canadian government over its obligations under the Investment Canada Act.
Several steel companies in Ontario, including Algoma Steel and ArcelorMittal Long Products Canada, have also faced workforce challenges and operational adjustments in response to market conditions and trade dynamics.
Efforts are being made to address the influx of cheaper foreign steel imports that have impacted Canadian producers. Calls for increased tariff-rate quotas to protect domestic steel producers have been made to counter the competitive challenges posed by imported steel.
The steel industry outlook differs between the U.S. and Canada, with projections indicating growth in U.S. steel production amid disruptions in trade flows. Canadian producers are under pressure to maintain export volumes and capacity utilization amid evolving market conditions.
Despite the current challenges, there is optimism for a resolution to the trade disputes and a potential turnaround in the industry, with hopes for the laid-off workers to be recalled once the trade situation stabilizes.