October 1 update: unions challenge the company’s explanation

United Steelworkers Locals 1005 and 8782 are urging Ottawa to enforce the employment commitments made when Cleveland-Cliffs acquired Stelco in 2024, The Canadian Press reported Thursday.

The unions argue that CEO Lourenco Goncalves’s public support for U.S. steel tariffs undermines the company’s attempt to attribute the cuts to circumstances beyond its control. That is the unions’ allegation, not a finding by a court or regulator.

Local 1005 president Ron Wells said about 40 Hamilton workers had been offered positions in Nanticoke. Stelco has said overall steel tonnage will not fall and that a significant number of affected employees are expected to receive transfer offers. The company did not immediately respond to the news agency’s request for comment on the union statement.

Industry Minister Mélanie Joly said Wednesday that Ottawa was evaluating its options. This update adds the unions’ October 1 response; it does not describe another round of layoffs.

Update source: The Canadian Press, October 1, updated 3:20 p.m. ET.

The original announcement

HAMILTON — Stelco plans to idle its cold-rolled and coated steel operations in Hamilton beginning October 9, putting hundreds of jobs in question and bringing another difficult turn for a city with deep roots in steelmaking.

The union representing Hamilton workers says approximately 350 employees there will be laid off. Broader reporting has put the potential number of affected workers across Stelco’s Ontario operations as high as 500. Those figures describe different groups and should not be treated as a single confirmed Hamilton layoff total.

Stelco has cited U.S. tariffs and weaker demand for the products made at the Hamilton facility. The company says it intends to concentrate production at its Lake Erie Works in Nanticoke and offer some affected employees an opportunity to work there. How many workers can take such positions, and on what terms, remains an immediate question.

The announcement reaches beyond the plant. A job in Hamilton and a possible job in Nanticoke can mean very different commutes and arrangements for a household. Workers will need details about transfers, layoff dates and any other options before they can assess what the change means for them.

Stelco’s decision also puts the consequences of the trade dispute in local terms. Tariff policy and market demand are often discussed as national economic issues. In Hamilton, their effects will be measured in jobs, paycheques and the future of an industrial site.

The number of workers ultimately laid off, the extent of any transfers and the duration of the shutdown remain the central facts to establish as the October 9 date approaches.

Sources: Global News; Reuters.

Lead image: an AI-generated editorial illustration, not a photograph of the reported event.