Stelco Holdings recently cut 85 jobs last week, as reported by union leader Ron Wells. A week prior, the company had issued 90 layoff notices.
Although the U.S.-owned steelmaker attributes the layoffs of up to 500 workers in Hamilton and Nanticoke, Ont., to temporary effects of the Canada-U.S. trade conflict, advancements in technology and changing demand patterns are also contributing to reducing the industry’s once-thriving workforce.
Statistics Canada indicates that direct employment in Canada’s primary steel manufacturing sector has declined from nearly 29,000 workers in 2003 to approximately 14,000 employees as of July this year.
United Steelworkers Local 1005 President, Ron Wells, who has been with Stelco for 47 years, mentioned that the workforce at Stelco stood at around 14,000 when he started. The steel production process now requires significantly fewer workers, making it more streamlined, according to Wells.
According to U.S. regulatory filings, Cleveland-Cliffs, the Ohio-based parent company of Stelco and the largest flat-rolled steel producer in North America, saw its total workforce decrease from about 30,000 employees to roughly 25,000 between December 31, 2024, and December 31, 2025.
This year’s job cuts included approximately 600 layoffs in Dearborn, Mich., where Cleveland-Cliffs halted a large blast furnace due to soft demand from North American automakers. This decision led to another 600 job cuts in Minnesota to align the company’s raw ore output with reduced blast furnace demands.
In response to the tariffs imposed by U.S. President Donald Trump on certain steel and aluminum imports from Canada in September, Stelco announced layoffs of up to 500 employees at its Ontario facilities, triggering a dispute between the company and the Canadian government regarding Stelco’s commitments under the Investment Canada Act.
Apart from Stelco, other steelworkers in Ontario are also facing uncertain job prospects. Last December, Algoma Steel issued layoff notices to about 1,000 workers, nearly a third of its workforce, attributing the move to U.S. tariffs impacting its export competitiveness and plans to transition to greener and less labor-intensive production methods.
ArcelorMittal Long Products Canada shut down its wire-drawing facility in Hamilton in June 2025, citing economic challenges, increased steel imports, and market conditions as reasons for the closure.
Efforts to address the influx of cheaper foreign steel imports have been made by Stelco President Paul Simon, who highlighted that imports of cold-rolled and coated steel account for 45 percent of the market share for such products. There are calls to increase tariff-rate quotas to protect Canadian producers from foreign competition, as per Wells.
A forecast by research firm Wood Mackenzie indicates a contrasting outlook for the steel industries in the U.S. and Canada. While U.S. steel production is expected to rise by about 4.5 percent this year, Canada faces challenges due to disrupted trade flows resulting from increased U.S. steel tariffs.
Wells expressed optimism about recent price increases for galvanized steel, despite Stelco moving away from this product in Hamilton. He believes that the layoffs and mill idling are strategic moves to influence trade negotiations and political outcomes, attributing the situation to the impact of tariffs and political considerations.
With a potential legal battle between Cliffs and Ottawa looming, Wells remains hopeful that Stelco will eventually rehire the laid-off workers, albeit expressing skepticism about the company’s promises. He believes the current trade issues will be resolved, leading to the reemployment of affected members.