Layoffs are currently being implemented at Stelco’s steel facility in Hamilton, a process anticipated to unfold over the next three weeks.
Ron Wells, president of United Steelworkers Local 1005, which represents Stelco employees in Hamilton, indicated that not all workers have been officially informed yet. However, he noted that “people generally have an understanding” of their job security status.
On Wednesday, Wells mentioned that an initial group of layoffs is expected this week, followed by another next week and a final set the week after. One employee, Jordan Williams, shared with CBC Hamilton that he was notified on Wednesday, with his layoff taking effect on Sunday.
Wells anticipates that between 300 and 350 employees will be laid off in Hamilton, with additional layoffs at Stelco’s Lake Erie Works in Nanticoke, which is affiliated with another union local.
He clarified that new provisions in Ontario’s Employment Standards Act allow the company to avoid giving advance notice for temporary layoffs shorter than 35 weeks, meaning workers might receive their layoff notice and have their employment terminated on the same day.
Ron Wells, president of USW Local 1005, expresses his ‘disgust’ over the decision to lay off around 350 workers. (Meagan Fitzpatrick/CBC)
He added that should the layoffs become permanent after 35 weeks, the company would be required to include those 12 weeks in any severance payments owed. He also mentioned that the laid-off employees would continue to have access to their medical benefits for the time being.
“People are clearly concerned about what lies ahead. How will they manage their expenses?… But the dominant sentiment is frustration,” Wells stated. “Almost every worker I’ve spoken to believes that this shutdown and subsequent layoffs are unjustified. There is demand for our product, and we feel like pawns in a political maneuver.”
Wells suspects that Cleveland-Cliffs, the owner of Stelco, is motivated to give the impression that tariffs imposed by U.S. President Donald Trump are effective, especially with the upcoming midterm elections in the U.S.
“I sincerely hope the federal government takes action against them,” Wells remarked. “We just want to ensure they… follow through with it.”
Industry Minister Mélanie Joly cautioned on Monday that Stelco had a five-day window to present a strategy to preserve jobs or face legal repercussions under the Investment Canada Act.
In a previous interview with CBC News, Goncalves defended his decision to halt production.
“We had the capability to sell in the United States,” he remarked at that time. “That was a fundamental condition for me to acquire Stelco.
“I would not have proceeded with buying Stelco had I known that Canada and the United States would turn into such adversaries in trade.”
CBC Hamilton reached out to Stelco to inquire whether the company intends to meet the government’s deadline but did not receive a response.
Local tradespeople anticipate layoff impacts and seek to assist
Wells indicated that for each laid-off steel worker, there could be up to five additional jobs that may be at risk. Bernard Tompkins, an employee at a contracting firm that performs equipment maintenance at Stelco, expressed that individuals in various trades are anxious.
“Being on-site gives me insight into how far-reaching the consequences can be beyond those Stelco workers facing layoffs,” Tompkins stated in an email on Wednesday.
“It’s not only the affected employees — it also impacts other building trades, contractors, suppliers, technicians, and businesses reliant on maintaining and supporting these operations.”
Tompkins, a boilermaker who is campaigning for Hamilton council in Ward 2, mentioned that his union is exploring the possibility of creating internship programs for some of the displaced Stelco workers “given the volume of work currently available in [the] trade.”
“I understand that discussions about this are already happening,” he noted. “I genuinely empathize with the workers and their families facing this challenging time, especially with the holiday season approaching.”
Job retraining options available for 75 laid-off workers
On Tuesday, both the federal and provincial governments announced an investment of $203,000 for job retraining aimed at 75 “steel and manufacturing workers,” to be administered by Learning Connections Hamilton.
“Ontario will allocate the funding through Skills Advance Ontario, which collaborates with employers and training institutions to assist workers in transitioning to high-demand careers,” stated a release from the province.
“The training will offer participants skills assessments, tailored training plans, digital skills enhancement, training referrals, case management, and assistance in obtaining certifications and short-term training necessary for employment.”
Affected employees can seek support through the United Steelworkers Action Centre by calling 905-548-9197 or visiting in person at 1031 Barton St. E.
Hamilton Mayor Andrea Horwath stated on Wednesday that her “Head of Lake Ontario” tariff-response strategy will assist laid-off Stelco workers by keeping property tax increases below inflation and providing emergency tax and fee deferrals for those struggling to pay their city bills.
“Upon hearing the news regarding Stelco, I promptly urged the federal and provincial governments to work towards preserving these jobs through negotiation or enforcement, and to quickly allocate relief funding for affected workers and their families,” she mentioned in an email statement to CBC Hamilton on Wednesday.
“While I cannot influence Trump’s decisions, I can control our response.”