Layoffs have reportedly begun at the Hamilton's Stelco steel plant in Canada, which is owned by American company Cleveland-Cliffs, amid President Trump’s sweeping tariffs on Canadian steel imports. Canadian Prime Minister Mark Carney previously suggested that he would take legal action in response to such a move, arguing that it violated the takeover agreement Cleveland-Cliffs signed in 2024. With the midterm elections in 26 days, Trump is looking for evidence that his controversial tariff policy will return jobs to the United States as promised.
It comes as tensions over trade and sovereignty have pushed relations between the U.S. and Canada, previously solid allies, to a post-World War II low. Newsweek contacted Stelco by email and Cleveland-Cliffs by online media inquiry form on Thursday for comment outside regular office hours. Ron Wells, who heads the United Steelworkers Local 1005 union that covers Stelco’s Hamilton plant, told CBC News on Thursday that layoffs have begun and are expected to continue over the next three weeks.
He said he expected 300 to 350 layoffs, adding that “people have a general idea” if their jobs are at risk but haven’t all been formally notified. Wells also warned that there could be additional layoffs at Stelco's Lake Erie Works in Nanticoke that is covered by a different union. Jordan Williams, a Hamilton steelworker, told CBC Hamilton that he was given his notice on Wednesday and it takes effect on Sunday.
Wells said that due to the Ontario's Employment Standards Act, temporary layoffs shorter than 35 weeks could be imposed immediately, though if it goes beyond that point and becomes permanent, “they would have to add those 12 weeks to any severance pay owing.” Laid-off workers are continuing to receive medical benefits at this time. "How [are] you going to pay the bills?...But the overriding emotion is anger. I think almost all the workers I've talked to, they feel that this shutdown and layoff isn't necessary.
There's a market out there for our product and we're being used as pawns in a political game.” Cleveland-Cliffs announced that layoffs were coming to the Hamilton site on September 28, with Stelco reporting that up to 500 workers could lose their jobs. However, the American parent company said that some of those affected would move to Lake Erie Works. In a memo sent by Cleveland-Cliffs to workers, the company explicitly linked the move to Trump’s steel tariffs on Canada, which it said had “significantly shrunk the market” for its products.
In a statement provided to Newsweek, Canadian Minister of Industry Mélanie Joly said: “For some time, our government has made clear to the company that we are ready and willing to provide financial support to sustain operations and protect jobs. Its decision to reject these practical proposals and continue with layoffs is extremely disappointing. We will use every lever possible to defend Canadian industry, protect jobs, and secure our supply chain.” Speaking after the initial announcement, Carney threatened Cleveland-Cliffs with legal action, arguing that its proposal violated the terms of its $2.4 billion 2024 takeover of Stelco.
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