Hundreds of workers at Stelco’s Hamilton Works plant are facing layoffs after the company announced Monday it will indefinitely idle its cold-rolled and coated operations there.
Ron Wells, president of United Steelworkers Local 1005, said the wind-down is expected to begin Oct. 9, with about 350 workers at the Hamilton plant expected to lose their jobs. He said total layoffs across the Hamilton plant and the Lake Erie Works facility in Nanticoke, Ont., could reach 500 — a figure Stelco has also cited.
Wells said the union was informed of the decision during a meeting with the company Monday morning, and described the reaction among workers as one of disappointment turning to anger. Many employees are uncertain how long the layoffs will last, as the company has not given an end date.
Families Facing Uncertainty
For workers’ families, the announcement has already created stress. Jillian Watt, whose husband has worked as a line worker at Stelco Hamilton for 21 years, said he has not yet been told whether he will be among those laid off. Watt said her husband had grown concerned in recent months as operations were idled and orders slowed.
She said the family, which includes four children, relies on her husband’s income, and that decisions based on seniority could affect his job security given his tenure with the company.
Stelco has said some affected Hamilton workers could be offered positions at the Lake Erie Works plant in Nanticoke. However, Wells said the union was told only about 40 to 45 openings exist there, far fewer than the number of potential layoffs in Hamilton.
Company Response and Ownership Commitments
Pat Persico, senior director of corporate communications for Cleveland-Cliffs, which acquired Stelco in 2024, said in a statement that the company’s total steel output will not be affected as production is consolidated at Lake Erie Works. Persico said job opportunities there will be offered to Hamilton employees, and the company expects a significant number of those affected by the Hamilton idling to be absorbed at the Nanticoke facility.
Wells questioned whether Cleveland-Cliffs is honouring commitments made when it acquired Stelco, which he said included maintaining current levels of unionized employment for five years. He said he wants the federal government to enforce that agreement, arguing that decision-makers in Cleveland have no direct ties to the Hamilton community.
Political Reaction
At a news conference in Vancouver, Prime Minister Mark Carney said his thoughts were with the workers and families he said had been “betrayed by the company.” Carney did not directly say whether Ottawa was considering legal action over the apparent breach of employment commitments, but said Cleveland-Cliffs “has legal obligations for employment” and that the government intends to pursue the matter using all powers available to it. Carney also linked the situation to U.S. tariffs, noting that Cleveland-Cliffs CEO Lourenco Goncalves had previously praised the tariffs.
Hamilton Mayor Andrea Horwath said the city has been working with federal and provincial governments in response to the announcement and has asked city staff to review the commitments Cleveland-Cliffs made during its restructuring process. She said the city intends to push the company to honour its obligations and protect the jobs.
Liberal MP Karina Gould, who represents the nearby riding of Burlington, called the layoffs “devastating news” for Hamilton and said the federal government is prepared to offer support aimed at maintaining operations and protecting jobs. Hamilton mayoral candidate Keanin Loomis, who also serves as president and CEO of the Canadian Institute of Steel Construction, said steel jobs have supported generations of Hamilton families and remain vital to the local economy.
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