Stelco begins issuing layoff notices at Hamilton steel plant

Stelco Holdings Inc. has begun issuing layoff notices at its Hamilton, Ontario, steel plant, marking the start of a wave of job cuts expected to affect up to 500 workers across its Hamilton and Lake Erie facilities. The United Steelworkers union reports that approximately 90 workers are expected to receive notices this week, with the first layoffs scheduled to take effect this Sunday. The company cited weak demand, import pressure, and an ongoing trade crisis as reasons for the cuts.

Canadian Industry Minister Mélanie Joly has threatened to use ‘the full force of the law’ against Stelco’s parent company, U.S.-based Cleveland-Cliffs Inc. Joly argued that the company cannot use trade tensions as a justification for job cuts, noting that Cleveland-Cliffs’ leadership has publicly supported steel tariffs. The Canadian government is demanding a plan to ensure the company honors its 2024 commitment to maintain more than 1,500 jobs.

While the company describes the reductions as indefinite layoffs, the union is treating them as temporary under its collective agreement. The layoffs primarily impact unionized workers, while salaried employees have not been affected so far.