Algoma Steel in Sault Ste. Marie, Ont., has informed approximately 1,000 workers about upcoming layoffs as it closes its blast furnace and coke making operations. The company emphasized the necessity of this move to safeguard its future amidst challenging market conditions, advocating for a fair trading environment for Canadian steel.
The decision to issue layoff notices was driven by the impact of unprecedented tariffs imposed by the United States, which have significantly altered the competitive landscape. The steel mill’s transition to an electric arc furnace, planned for early 2026, is accelerating, leading to earlier-than-expected job cuts.
United Steelworkers Local 2251 President, Mike Da Prat, disclosed that 900 union members received layoff notices. While uncertainties exist regarding the permanency of these job cuts, efforts are underway to rectify discrepancies in the list and address concerns raised by affected members. Da Prat highlighted ongoing collaboration between the union and the company to implement mitigation strategies, such as a trades helper program for displaced workers.
As Algoma Steel grapples with reducing its workforce by one-third, concerns arise about the availability of alternative employment opportunities in northern Ontario. Bill Slater, president of Algoma Steel Local 2724’s office and professional union, anticipates around 150 of his members facing layoffs, emphasizing the significant impact of simultaneous job losses.
Despite receiving substantial government loans to counter U.S. tariffs, challenges persist for the steel manufacturer and its employees. Slater expressed disappointment over the government’s rejection of tying the financial assistance to employment retention targets.
