Stelco Holdings Inc. said on Monday that it plans to idle part of its Hamilton plant in order to “ensure the survival” of the company, as U.S. tariffs squeeze its sales.
Stelco said the decision will impact up to 500 employees.
In a memo obtained by CBC News on Monday, the company said it will indefinitely idle its cold-rolled and coated operations at its Hamilton Works plant, with operations set to begin winding down on Oct. 9.
Ron Wells, president of United Steelworkers Local 1005, estimates 350 steelworkers will be laid off. He says he was briefed on the situation in a meeting with the company on Monday morning.
“Obviously, we got to meet with the company, and find out who’s getting laid off, [and] make sure it’s done by seniority,” Wells told CBC News on Monday. “Christmas ain’t that far away, and we have no idea the duration of these layoffs … People are concerned. I don’t blame them.”
The company said this will not impact its ability to supply hot-rolled steel products.
“This is an unfortunate but necessary action to help ensure the survival of Stelco in what has become a challenging and unsustainable market for cold-rolled and coated products caused by the ongoing and sustained trade disruptions impacting the Canadian steel industry,” Stelco vice-president of sales Frederic Fafard stated in the memo.
U.S. President Donald Trump signed an executive order in June applying up to 50 per cent tariffs to certain steel and aluminum imports from Canada.
“Stelco’s market for cold-rolled and galvanized products has contracted significantly, while import penetration for these products remains at heightened levels,” Fafard said in the memo.
“While the measures taken by the federal government in Canada have served to reduce imports into Canada overall, import volumes remain at levels that prevent Stelco from being able to bridge the gap in the market created by the trade crisis.”
Ohio-based Cleveland-Cliffs acquired Hamilton-based Stelco in a $3.4-billion Cdn cash-and-stock deal that closed in November 2024. In a news release announcing the deal, Stelco’s then-CEO Alan Kestenbaum stated the transaction “keeps national interests at the forefront and recognizes the importance of the workforce.”
Canadian steelmaker Stelco is indefinitely shutting down part of its Hamilton operations, affecting up to 500 workers. The company points to pressure from the trade war, including steep American tariffs that have reduced steel exports to the U.S.
“We’re very disappointed,” Wells said. “In particular, when Cliffs bought us in the fall of 2024, they made commitments. One of those commitments was to maintain the same number of unionized employees.”
In an email to CBC News on Monday, a Cleveland-Cliffs spokesperson confirmed Joly has been in touch with chairman and CEO Lourenco Goncalves.
“Both Cliffs and the Canadian government have the interests of the Stelco workers in mind, and will continue to work together to minimize the impact of the current market situation on Canadian workers,” wrote Pat Persico, the company’s senior director of corporate communications.
She said that while Stelco is idling some of its operations in Hamilton, the company’s total output of steel will not be impacted as it consolidates production at its Lake Erie Works.
“Very importantly, job opportunities at Lake Erie Works will be offered to Hamilton employees,” Persico wrote in a previous email.
“We expect that a significant number of employees affected by the indefinite idle at Hamilton should be absorbed at Lake Erie Works.”
Industry Minister ‘extremely disappointed’
In a statement on Monday, Industry Minister Mélanie Joly slammed the decision to lay off workers, while noting Ottawa had offered to help Stelco weather the impact of U.S. tariffs.
“Our government has made clear to the company that we are ready and willing to provide financial support to sustain operations and protect jobs. Its decision to reject these practical proposals and continue with layoffs is extremely disappointing,” she said.
“Stelco and Cleveland-Cliffs have made significant commitments to Canadian steelworkers. We will use every lever possible to defend Canadian industry, protect jobs, and secure our supply chain.”
Trump announces new steel plant in Iowa
On Monday, U.S. President Trump touted a new $15-billion US investment plan by Minnesota-based steelmaker Mesabi Metallics as evidence that American tariffs on imported steel are working as his administration intended.
The company announced plans to build a massive plant in Iowa, with production set to begin in 2030.
“I imposed powerful 50 per cent tariffs on all foreign steel, and now our steel industry is roaring back to life.” Trump said at a news announcement in the Oval Office. “Everyone is building their plant here because they don’t want to pay tariffs. It’s really not that complicated.”
The move is raising concerns north of the border, where Kevon Stewart, director of United Steelworkers District 6, said his phone has been lighting up with calls from distressed Canadian workers.
“Everything is timing right now,” he told CBC News on Monday.
“This is not only a wake-up call, because the call for action has been there before. But we’ve got to come up with a game plan that ensures workers are protected if and when these measures are implemented.”
He said such protections could include increased benefits, or removing the waiting time for benefits.
Colin Mang, an economist at McMaster University in Hamilton, said the layoffs announced Monday are “a consequence of our trade war with the United States.” For Stelco, he said the situation is worsened by a steady flow of foreign products coming into Canada.
“The lack of access to the American market has meant that we have a surplus of steel production capacity here in Canada, and there just isn’t enough domestic Canadian demand in order to absorb all of the output from the steelmakers here,” Mang told CBC News.
“The Canadian government has worked to restrict the amount of steel coming into Canada, but when you look at a variety of steel products, particularly the kinds of flat products that Stelco manufactures, Canada has imported about 1.2 million tons from other trading partners around the world. That’s because we continue to have free trade agreements with a variety of countries. So, it’s very difficult to restrict imports from our other trading partners.”
Blair Dickerson, president of the Canadian Steel Producers Association, said his thoughts are with the workers impacted by Monday’s announcement. He also called upon Canada’s federal government and the Trump to resolve their ongoing trade tension.
“Days like today demonstrate how challenging the tariff situation is, and provide a stark reminder as to the urgency of finding a solution,” Dickerson said in an email.
“Recognizing the Government’s support to date, Canada must continue and deepen the work of keeping unfairly traded steel out of our market, enforcing our measures at the border, and ensuring our producers can be competitive here at home.”
‘The fight is not over’: Hamilton mayor
Hamilton Mayor Andrea Horwath said she plans to fight to ensure Stelco and Cleveland-Cliffs live up to the commitments their executives made to workers in her city.
“The fight is not over,” she told the CBC’s As It Happens radio program on Monday.
As It Happens6:54Hamilton steelworker layoffs ‘painful for our community,’ says mayor
As of next Friday, about 350 Hamilton, Ont., steelworkers will be out of work, according to their union. Stelco, the U.S.-owned company that operates the Hamilton plant, blames the layoffs on trade disputes between the U.S. and Canada. But Hamilton Mayor Andrea Horwath says the fight isn’t over. She spoke to As It Happens host Nil Kӧksal.
“This particular company has been very clear … that they support Donald Trump and his tariffs, and desire to pull all steelmaking back into the United States.
Wells, president of United Steelworkers Local 1005, said it’s ironic for a company’s whose leadership supports Trump to criticize U.S. tariffs for eroding its business.
“The CEO, Lourenco Goncalves, he’s the biggest supporter of Trump and his tariffs. So, it’s tough to have any sympathy when you know they’re the basically the master of this disaster.”
