Layoffs are currently happening at the Stelco steel plant in Hamilton, with the process expected to take place over a three-week period. Ron Wells, the president of United Steelworkers Local 1005 representing Stelco workers in Hamilton, mentioned that while not all employees have received formal notification, many have a sense of whether their jobs are at risk.
According to Wells, the layoff process will occur in batches over the next few weeks. One worker, Jordan Williams, disclosed that he received his layoff notice on Wednesday, which will come into effect on Sunday. Wells anticipates that approximately 300 to 350 workers will be laid off in Hamilton, with additional layoffs expected at Stelco’s Lake Erie Works in Nanticoke, under a different union local.
Due to recent changes in Ontario’s Employment Standards Act, companies are not obligated to provide advance notice for temporary layoffs lasting less than 35 weeks. This means that employees could receive their layoff notice and be let go on the same day. Wells mentioned that if the layoff becomes permanent after 35 weeks, the severance pay owed would need to include those additional weeks. However, the affected workers will continue to receive medical benefits for the time being.
Wells expressed that the employees are understandably concerned about their future financial stability but are primarily feeling anger about the situation. He stated that many workers believe the shutdown and layoffs are unnecessary, and they feel manipulated for political reasons. Wells suspects that the Stelco owner, Cleveland-Cliffs, is keen on showcasing the success of President Donald Trump’s tariffs ahead of the U.S. midterm elections.
In response to the layoffs, Industry Minister Mélanie Joly issued a warning to Stelco, giving the company five days to present a plan to preserve jobs; otherwise, legal action under the Investment Canada Act would be pursued. Goncalves, the CEO of Cleveland-Cliffs, defended the decision to halt production, citing the changing trade dynamics between Canada and the United States.
Amid the layoffs, local tradespeople are also feeling the impact, with concerns rising about potential job losses in various sectors. Bernard Tompkins, who works for a contractor at Stelco, highlighted the ripple effect on trades beyond the directly affected employees. He mentioned that discussions are underway to explore internship opportunities for displaced Stelco workers to support their transition.
In an effort to assist the affected workers, federal and provincial governments announced funding for job retraining programs aimed at 75 steel and manufacturing workers through Learning Connections Hamilton. This initiative will offer skills assessments, customized training plans, digital skills enhancement, and support in obtaining necessary certifications for new job opportunities.
Hamilton Mayor Andrea Horwath outlined a tariff-response plan to aid laid-off Stelco workers by minimizing property tax increases, offering emergency tax and fee deferrals for those facing financial challenges, and calling on the government to take action to preserve jobs. The mayor emphasized the importance of responding proactively to the situation.
