Stelco Holdings recently cut 85 workers, with another 90 receiving layoff notices the week before, as confirmed by union leader Ron Wells. The U.S.-owned steel company attributes the layoffs, which may reach 500 in Hamilton and Nanticoke, Ontario, to the Canada-U.S. trade conflict and evolving industry demands alongside technological advancements.
Statistics Canada reports a decline in direct employment in Canada’s primary steel manufacturing sector from around 29,000 in 2003 to approximately 14,000 as of July. Wells, the president of United Steelworkers Local 1005 and a longtime Stelco employee, noted that the workforce was about 14,000 strong when he started working there.
The steel industry’s workforce reduction trend is not exclusive to Stelco. Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel producer, downsized from roughly 30,000 employees to 25,000 in a year. This restructuring included layoffs in different locations due to soft demand from North American automakers.
In response to U.S. tariffs, Stelco announced up to 500 layoffs at its Ontario facilities, sparking a dispute with the federal government regarding its obligations under the Investment Canada Act. Other steel companies in Ontario, such as Algoma Steel and ArcelorMittal Long Products Canada, have also faced challenges, resulting in layoffs and facility closures.
Industry stakeholders, including Stelco and union leaders like Wells, call for measures to address the influx of cheaper foreign steel imports, advocating for increased tariff-rate quotas to safeguard Canadian producers. The ongoing negotiations and market conditions have raised concerns about the future of the steel industry in Canada compared to the U.S.
Despite the uncertainty, there is optimism among workers like Wells for a resolution to the current trade challenges and a potential recall of laid-off employees. The evolving landscape of the steel industry, influenced by trade policies and market dynamics, continues to shape the future of steel production in Canada.