Stelco begins issuing layoff notices as first job cuts set to take effect Sunday

Stelco Holdings Inc. has begun issuing layoff notices at its Hamilton, Ontario steel plant, marking the beginning of a series of job cuts expected over the next three weeks. Approximately 500 workers may lose their positions as part of the company's plans to address ongoing trade issues, weak demand, and continued import pressure.

Ron Wells, president of United Steelworkers local 1005, revealed that some employees received notices on Wednesday, instructing them not to report for their next scheduled shift. Around 90 workers are anticipated to receive layoff notices this week, with the first layoffs scheduled to commence on Sunday. Wells explained that the company is taking a phased approach, as they need to winterize the facility and reduce operations in preparation for potential future demand.

The Hamilton plant is expected to see around 330 workers affected by the layoffs, with additional cuts anticipated among co-op workers and employees at the Lake Erie Works pickling operations in Nanticoke. The layoffs primarily impact unionized workers, while salaried employees have thus far avoided the cuts. While the company refers to the layoffs as indefinite, the union views them as temporary under their collective agreement.

Stelco, owned by U.S.-based Cleveland-Cliffs Inc., announced its intention to cut up to 500 positions across its Hamilton and Lake Erie facilities earlier this week. Industry Minister Mélanie Joly has threatened legal action against Cleveland-Cliffs if the company fails to submit a plan outlining its commitment to honor the job commitments made when it acquired Stelco in 2024.