Federal Government Warns Stelco Over Layoffs of Up to 500 Workers Amid U.S. Tariff Pressures
Industry Minister Mélanie Joly has threatened legal action, including financial penalties or forced asset sales, after Stelco announced layoffs affecting up to 500 workers due to U.S. tariffs. The company halted production at its Hamilton plant and disputed government claims that the job cuts breach prior undertakings.
Stelco has announced layoffs affecting up to 500 workers, prompting a sharp response from the federal government. Approximately 90 workers received layoff notices last week, with the first round taking effect Sunday. The remainder of the layoffs are expected to roll out over three weeks.
The steelmaker attributed the job cuts to pressure from U.S. tariffs. As a result, Stelco halted production at its Hamilton plant and concentrated steel production at its Lake Erie Works plant in Haldimand. In a response letter dated Oct. 9, written by president Paul Simon, the company detailed the impact of the U.S. tariffs on its operations.
Industry Minister Mélanie Joly had given Stelco five days to respond to an ultimatum outlined in a letter dated Oct. 5. Joly stated she is willing to negotiate if Stelco returns to the table, but warned that the government could impose financial penalties or force a sale of assets if the layoffs continue and jobs are not preserved.
Stelco pushed back against the government's position. The company's letter claimed that meetings held in early September led them to believe the government understood the market realities confronting their Hamilton Works finishing lines. Furthermore, Stelco described the government's representation that the planned layoffs cause a breach of undertakings as "false."