Stelco Holdings Inc. announced a strategic move to halt operations at a portion of its Hamilton plant to safeguard the company’s future amidst challenging market conditions worsened by U.S. tariffs. This decision is expected to affect approximately 500 employees. The company disclosed in a memo obtained by CBC News that it will indefinitely suspend its cold-rolled and coated operations at the Hamilton Works plant, with the gradual winding down of operations commencing on October 9.
According to Ron Wells, president of United Steelworkers Local 1005, around 350 steelworkers are anticipated to face layoffs. He expressed concerns over the lack of clarity regarding the duration and seniority-based layoff processes. Stelco assured that the supply of hot-rolled steel products will remain unaffected by the operational changes.
Frederic Fafard, Stelco’s vice president of sales, explained in the memo that the decision to idle operations was regrettable but necessary given the challenging market conditions for cold-rolled and coated products due to ongoing trade disruptions impacting the Canadian steel industry.
Following Cleveland-Cliffs’ acquisition of Stelco in a $3.4 billion transaction in November 2024, the company pledged to maintain the workforce size. However, Wells expressed disappointment over the recent layoffs, highlighting the commitments made during the acquisition.
Despite the operational adjustments in Hamilton, Stelco reassured that overall steel production would not be affected as they consolidate operations at Lake Erie Works. The company plans to offer job opportunities at Lake Erie Works to the affected Hamilton employees, aiming to absorb a significant number of impacted workers.
Industry Minister Mélanie Joly criticized the layoffs, emphasizing the government’s readiness to support Stelco amid tariff challenges. Meanwhile, U.S. President Trump’s announcement of a new steel plant in Iowa raised concerns, with Canadian steelworkers expressing distress over the impact of tariffs and trade disputes on the industry.
Hamilton Mayor Andrea Horwath vowed to advocate for the commitments made to workers by Stelco and Cleveland-Cliffs, emphasizing the ongoing fight to protect jobs and uphold industry standards despite the current challenges.
