Cleveland-Cliffs has announced that Stelco experienced its most robust performance in the third quarter of this year since being acquired by the U.S.-based company in 2024. Despite this success, a significant number of employees at the steelmaker’s Ontario facilities in Hamilton and Nanticoke are facing imminent job losses. Layoff notifications began earlier in the month and are still ongoing.
Speaking about Stelco’s recent achievements, Cleveland-Cliffs CEO Lourenco Goncalves highlighted the notable improvement in the Canadian hot-rolled market. However, Goncalves also emphasized the necessity for additional actions by the Canadian government to address the issue of oversupply in the galvanized steel market within the country.
Stelco Holdings Inc. had previously announced plans to temporarily idle a section of its Hamilton plant to safeguard the company’s viability in the face of challenges posed by U.S. tariffs impacting its sales. Union representatives disclosed that approximately 333 employees in Hamilton and up to 50 workers at the Nanticoke Lake Erie Works facility are expected to be affected by the layoffs.
During an earnings call, Goncalves expressed satisfaction with the growth of Cleveland-Cliffs’s major revenue streams, attributing part of the success to favorable trade policies under the administration of U.S. President Donald Trump. Despite acknowledging the adverse impact of tariffs on Stelco’s financial struggles, Goncalves praised the current market conditions, stating that the company is currently benefiting from the best pricing environment in the past three years.
The CEO credited the Canadian government’s tariff-rate quota system for contributing to the positive performance of the hot-rolled steel sector. He reiterated the company’s commitment to maintaining employment levels as agreed upon during the acquisition, urging for government intervention to rectify the market imbalance and facilitate the rehiring of temporarily laid-off workers.
Amidst discussions about potential legal actions against Cleveland-Cliffs, Goncalves affirmed Stelco’s position that the layoffs are a temporary measure pending the resolution of trade negotiations between Canada and the U.S. The company is prepared to defend its decisions in court, including potential challenges to preserve its workforce reduction plans.
Union representatives expressed concerns over the ongoing layoffs, describing the workforce’s sense of being undervalued and questioning the clarity of the messaging from the company’s leadership. They called for Minister Joly to uphold commitments under the Investment Canada Act and ensure accountability in the midst of evolving trade dynamics.
Overall, the situation highlights the complexities facing Stelco and its workforce as they navigate economic challenges and governmental responses in the steel industry.