Stelco Holdings recently cut 85 jobs last week, following 90 layoff notices issued the week before, as reported by union leader Ron Wells. The U.S.-owned steelmaker attributes the layoffs to the Canada-U.S. trade war, technological advancements, and shifting demand patterns impacting the industry’s workforce.
Statistics Canada data reveals a decline in direct employment in Canada’s primary steel manufacturing sector from around 29,000 workers in 2003 to approximately 14,000 workers as of July. Wells, the president of United Steelworkers Local 1005 and a long-time Stelco employee, noted that the company’s workforce was about 14,000 strong when he started.
The workforce reduction trend extends to Cleveland-Cliffs, the owner of Stelco and North America’s largest flat-rolled steel producer. The company’s total workforce decreased from roughly 30,000 to 25,000 employees between December 31, 2024, and December 31, 2025, with layoffs linked to soft demand from North American automakers.
Stelco’s announcement of up to 500 layoffs at its Ontario operations followed U.S. President Donald Trump’s imposition of tariffs on certain steel and aluminum imports from Canada. This move led to a dispute between Stelco and the federal government regarding the company’s commitments under the Investment Canada Act.
Additionally, other steel companies in Ontario, such as Algoma Steel and ArcelorMittal Long Products Canada, have faced job uncertainties and production shifts due to various market challenges and the need to adapt to changing industry dynamics.
Industry stakeholders, including Stelco’s president and union leaders like Wells, are advocating for measures to address the influx of cheaper foreign steel imports, emphasizing the importance of protecting Canadian producers and domestic steel industry interests.
As negotiations continue between stakeholders and government officials, the steel industry outlook in Canada appears distinct from that in the U.S., with differing production forecasts and market dynamics shaping the future trajectory of the sector.
Despite the current challenges, Wells remains hopeful that the temporary layoffs will be reversed as trade issues are resolved, emphasizing the importance of supporting Canadian steelworkers during these uncertain times.