Stelco Holdings Inc. announced its intention to temporarily shut down a section of its Hamilton plant to secure the company’s future amidst declining sales due to U.S. tariffs. This decision will affect around 500 employees. The company disclosed in a memorandum obtained by CBC News that it will indefinitely halt its cold-rolled and coated operations at the Hamilton Works plant, with the process starting on October 9.
Ron Wells, president of United Steelworkers Local 1005, estimated that approximately 350 steelworkers would face layoffs. He expressed concerns about the uncertainty of the situation and the impact on employees, especially with the holiday season approaching. Despite the shutdown, Stelco reassured that its hot-rolled steel products’ supply would remain unaffected.
The company emphasized that the move was regrettable but necessary to address the challenging market conditions for cold-rolled and coated products caused by ongoing trade disruptions affecting the Canadian steel industry. Frederic Fafard, Stelco’s vice president of sales, highlighted the impact of U.S. tariffs on the company’s market, leading to a substantial contraction in demand for certain steel products.
Following the acquisition of Stelco by Cleveland-Cliffs in a $3.4 billion deal in November 2024, concerns arose as commitments made during the acquisition, including maintaining the unionized workforce, are being questioned. While Stelco plans to consolidate production at its Lake Erie Works, offering job opportunities to impacted Hamilton employees, the layoffs have drawn criticism and disappointment from various stakeholders.
Industry Minister Mélanie Joly expressed disappointment over the layoffs and emphasized the government’s readiness to support Stelco amid the tariff challenges. Meanwhile, U.S. President Trump’s announcement of a new steel plant investment in Iowa raised concerns about the impact of tariffs on the Canadian steel industry.
Hamilton Mayor Andrea Horwath vowed to advocate for workers affected by the layoffs, underscoring the ongoing fight to hold companies like Stelco and Cleveland-Cliffs accountable to their commitments. The situation reflects the complexities of trade tensions and their repercussions on the steel sector, urging stakeholders to address the challenges collectively.