Stelco is set to lay off approximately 350 unionized workers next month as it partially idles its Hamilton steel plant, a move that has drawn sharp criticism from local union leaders and city officials.
Ron Wells, president of United Steelworkers Local 1005, said the union learned of the plan during a meeting with Stelco officials on Monday morning. According to Wells, the company said it will close the cold mill and coating departments at its Hamilton facility on Oct. 9, citing low steel prices and a market affected by tariffs in Canada.
Production in those two departments has reportedly slowed for months. Lourenco Goncalves, head of Cleveland-Cliffs — the U.S. steelmaking company that owns Stelco — warned investors during a July call that the Hamilton operation’s future was at risk if Canada did not take further action to restrict inexpensive steel imports. Goncalves said at the time that without stronger fair-trade protections, the competitiveness of Hamilton’s galvanizing lines would be jeopardized.
Wells said the news still caught workers off guard. He noted that employees generally trusted the company, making the announcement particularly unwelcome.
Hamilton Mayor Andrea Horwath described the layoffs as “devastating.” Speaking at a news conference that had originally been scheduled to discuss a strategy for protecting Hamilton amid the ongoing U.S.-Canada trade war, Horwath said it was unacceptable and unfair for an employer to lay off workers and disrupt the community in this way.
Company Cites Import Pressure
Trevor Harris, Stelco’s vice-president of corporate affairs, confirmed the layoffs in a written statement, saying the company had been forced into a difficult decision that could affect as many as 500 Stelco employees. Harris attributed the move to continued market uncertainty and what he called prolonged injury to Stelco’s business, largely stemming from steel imports into Canada. He added that the company is working with union leadership to meet its obligations under existing collective agreements.
There are 600 unionized workers at Stelco’s Hamilton site. While roughly 350 employees in the cold mill and coating departments will be laid off beginning in October, Wells said around 250 workers at the coke plant will continue working.
Ripple Effects at Nanticoke
The impact extends beyond Hamilton. John McElroy, president of the union local representing workers at Stelco’s Nanticoke facility, told The Spectator that another 60 to 80 unionized employees there will also lose their jobs in the coming weeks as a result of the changes in Hamilton. Nanticoke had previously supplied steel used in Hamilton’s cold mill, but McElroy said that supply chain will now end entirely.
Both McElroy and Wells argued the layoffs breach a commitment Cleveland-Cliffs made to maintain employment levels for five years when it acquired Stelco in 2024. Neither Harris nor Cleveland-Cliffs responded to questions about how the layoffs align with that earlier commitment.
The union leaders also pointed to Goncalves’ public support for Donald Trump and his tariffs on Canadian steel, suggesting it was ironic for the company to cite trade pressures as a factor in the layoffs given Cleveland-Cliffs’ leadership stance.
Calls for Government Action
Wells and McElroy said they have not ruled out pursuing legal action against Stelco and both called for a swift response from government officials. McElroy questioned why American-owned companies are able to establish operations in Canada only to scale them back, and urged governments to intervene.
As of Monday, neither the federal nor provincial government had responded to requests for comment on the announcement.
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