Stelco Holdings Inc. announced its intention to temporarily halt operations at a section of its Hamilton plant to safeguard the company’s viability amidst declining sales due to U.S. tariffs. The move is expected to affect around 500 employees. In a memo obtained by CBC News, the company revealed its plan to indefinitely idle the cold-rolled and coated operations at its Hamilton Works plant, with the process starting on October 9.
According to Ron Wells, president of United Steelworkers Local 1005, approximately 350 steelworkers are anticipated to be laid off. The company assured that the suspension of these operations would not impact its hot-rolled steel products supply. Stelco’s vice-president of sales, Frederic Fafard, emphasized in the memo that this decision was regrettable but necessary to address the challenging market conditions for cold-rolled and coated products, exacerbated by trade disruptions affecting the Canadian steel industry.
Following the acquisition of Stelco by Cleveland-Cliffs for $3.4 billion in November 2024, concerns have been raised regarding the commitment to maintaining the workforce. Despite the layoffs, Cleveland-Cliffs confirmed that job opportunities at its Lake Erie Works would be extended to affected Hamilton employees, aiming to minimize the impact of the operational changes.
Industry Minister Mélanie Joly expressed disappointment over the layoffs, highlighting the government’s readiness to support Stelco against the tariff impact. Meanwhile, U.S. President Trump’s announcement of a new steel plant in Iowa raised concerns, indicating the ramifications of trade policies on Canadian workers. The Canadian Steel Producers Association urged for solutions to address the challenges posed by tariffs, emphasizing the importance of safeguarding the domestic steel industry.
Hamilton Mayor Andrea Horwath vowed to advocate for the interests of the affected workers and hold the companies accountable for their commitments. The ongoing trade tensions between the U.S. and Canada continue to impact the steel industry, necessitating collaborative efforts to mitigate adverse effects on employees and production.
