Stelco Holdings Inc. announced its intention to halt operations at a section of its Hamilton plant to safeguard the company’s future amidst pressure from U.S. tariffs affecting its sales. Up to 500 employees will be impacted by the decision, as outlined in a memo obtained by CBC News. The company plans to indefinitely idle its cold-rolled and coated operations at the Hamilton Works plant starting on Oct. 9.
According to Ron Wells, president of United Steelworkers Local 1005, approximately 350 steelworkers are expected to face layoffs. Concerns were raised regarding the uncertainty of the duration of these layoffs and the impact on employees leading up to the holiday season.
Stelco assured that the suspension of operations will not hinder its supply of hot-rolled steel products. Frederic Fafard, Stelco’s vice-president of sales, emphasized in the memo that the decision was regrettable yet necessary to address the challenging market conditions for cold-rolled and coated products due to ongoing trade disruptions affecting the Canadian steel industry.
The company’s acquisition by Cleveland-Cliffs in a $3.4 billion deal aimed to uphold national interests and support the workforce, as stated by former CEO Alan Kestenbaum. Cleveland-Cliffs confirmed ongoing communication with Stelco workers and the Canadian government to mitigate the impact of market conditions on employees.
Industry Minister Mélanie Joly expressed disappointment over the layoffs, emphasizing the government’s readiness to provide financial assistance to sustain operations and preserve jobs. Meanwhile, U.S. President Trump highlighted a new steel plant investment in Iowa by Mesabi Metallics as proof of the effectiveness of American steel tariffs.
Hamilton Mayor Andrea Horwath vowed to advocate for the commitments made by Stelco and Cleveland-Cliffs to the city’s workers despite the challenging circumstances. United Steelworkers also voiced concerns over the impact of the trade war on Canadian steel producers and the necessity of finding solutions to maintain industry competitiveness.
