Stelco Holdings recently implemented layoffs affecting 85 employees, following a prior round of 90 layoff notices, as reported by union leader Ron Wells. The company, owned by the U.S., attributes the move to factors such as the Canada-U.S. trade conflict, technological advancements, and evolving demand patterns that are contributing to a reduction in the steel industry workforce.
Statistics Canada data reveals a decline in direct employment within Canada’s primary steel manufacturing sector from almost 29,000 workers in 2003 to approximately 14,000 employees as of July. Wells, who serves as the president of United Steelworkers Local 1005 and has been with Stelco for 47 years, noted that the company’s workforce stood at around 14,000 when he first joined.
Notably, the transformation in steel production processes has led to a more streamlined approach, requiring fewer workers to produce a ton of steel, Wells shared in an interview with CBC News. Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel manufacturer, witnessed a decrease in its workforce from approximately 30,000 employees to about 25,000 between December 31, 2024, and December 31, 2025.
Recent job cuts at Cleveland-Cliffs included 600 layoffs in Dearborn, Michigan, due to reduced demand from North American automakers, prompting further cuts in Minnesota to align with decreased blast furnace demand. Stelco, facing challenges following the imposition of tariffs on steel imports from Canada by U.S. President Donald Trump, announced up to 500 layoffs at its Ontario facilities, triggering a dispute with the Canadian government regarding its obligations under the Investment Canada Act.
Apart from Stelco, other Ontario steelworkers are also grappling with job uncertainties. Algoma Steel issued layoff notices to approximately 1,000 workers, attributing the decision to U.S. tariffs impacting export competitiveness and a shift towards more environmentally friendly and less labor-intensive production methods.
Calls have been made to address the influx of cheaper foreign steel imports, with concerns raised about their impact on the Canadian steel industry. Industry stakeholders advocate for increased tariff-rate quotas to safeguard Canadian producers from foreign competition that could potentially dilute prices in the domestic market.
Analysts predict diverging paths for the steel industries in the U.S. and Canada. While U.S. steel production is projected to increase despite shrinking demand, Canadian producers face challenges in maintaining export volumes and capacity utilization due to disrupted trade flows resulting from higher U.S. tariffs.
Wells remains optimistic about a resolution to the current trade tensions, hoping for the recall of laid-off workers. Despite uncertainties, he believes that the layoffs are temporary and anticipates a swift resolution to the trade disputes, enabling affected workers to return to their jobs soon.