Stelco Holdings has recently laid off 85 employees, with another 90 layoff notices issued the week before, as reported by union leader Ron Wells. The U.S.-owned steelmaker attributes these layoffs to the impact of the Canada-U.S. trade war, alongside advancements in technology and changing demand patterns, which have led to a reduction in the steel industry workforce.
Statistics from Canada show a decline in direct employment in the primary steel manufacturing sector from nearly 29,000 workers in 2003 to around 14,000 workers as of July. Wells, who has been with Stelco for 47 years and serves as the president of United Steelworkers Local 1005, highlighted that the workforce at Stelco was approximately 14,000 strong when he first joined the company.
The use of new technologies has resulted in a more streamlined process in steel production, requiring fewer workers to produce a ton of steel, according to Wells. The total workforce of Cleveland-Cliffs, the owner of Stelco and North America’s largest flat-rolled steel producer, has decreased from around 30,000 employees to about 25,000 between December 31, 2024, and December 31, 2025.
In response to reduced demand from North American automakers, Cleveland-Cliffs implemented layoffs, including 600 job cuts in Dearborn, Michigan, and an additional 600 in Minnesota to align raw ore output with decreased blast furnace demand. The company’s actions have led to tensions with the federal government over its obligations under the Investment Canada Act to maintain a specific number of workers in Canada.
Stelco and other steel producers in Ontario are facing uncertainties due to factors such as U.S. tariffs impacting export competitiveness. Algoma Steel issued layoff notices affecting about 1,000 workers, while ArcelorMittal Long Products Canada announced the closure of its wire-drawing facility in Hamilton. These developments have raised concerns about the future of the steel industry in the region.
Stelco’s president expressed concerns about the influx of cheaper foreign steel imports impacting the market share for certain steel products in Canada. Industry stakeholders are calling for increased tariff-rate quotas to protect domestic producers from foreign competition.
A forecast by research firm Wood Mackenzie indicates contrasting outlooks for the steel industries in the U.S. and Canada, with the U.S. expected to see a rise in steel production while Canadian producers face challenges in export volumes and capacity utilization. Despite the current challenges, there is optimism regarding potential improvements in steel prices, offering hope for the industry’s recovery.
As negotiations between Stelco and the government continue, there is a possibility of a legal battle between Cleveland-Cliffs and Ottawa. Union leader Ron Wells remains hopeful that the current layoffs are temporary and believes that a resolution to the trade issues will lead to the recall of laid-off workers in the near future.