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- calendar_today October 20, 2026
Stelco Achieves Strongest Quarter Since U.S. Acquisition
Stelco’s third quarter in 2026 was its strongest since being acquired by U.S.-based Cleveland-Cliffs in 2024, according to the company. However, the positive financial news comes as the steelmaker implements massive layoffs, with hundreds of workers in Hamilton and Nanticoke, Ontario, receiving notices.
Layoff Notices Amid Improving Steel Market
In early October, layoff notices began rolling out to Stelco workers. Cleveland-Cliffs CEO Lourenco Goncalves announced that all major profit drivers for the company had increased over the quarter, attributing success in part to improvements in the Canadian hot-rolled steel market. Despite the positive results, he emphasized the need for Canadian government intervention to address what he called an oversupplied market for galvanized steel.
Details on Layoff Numbers and Operational Changes
On September 28, Stelco Holdings Inc. announced plans to idle part of its Hamilton plant, citing the need to ensure the company’s survival in the face of U.S. tariffs. Ron Wells, president of United Steelworkers (USW) Local 1005, told CBC that 333 layoffs were expected in Hamilton. At the Lake Erie Works in Nanticoke, USW Local 8782 president John McElroy reported that up to 50 employees would be affected.
Tariffs and Trade Policies Impacting the Steel Industry
Cleveland-Cliffs CEO Goncalves credited the company’s strong quarter to U.S. trade policies, including tariffs. In June, former U.S. President Donald Trump signed an executive order imposing tariffs of up to 50 percent on certain steel and aluminum imports from Canada. Goncalves said the company is benefitting from the "best price environment in three years" and that the hot-rolled steel business has thrived due to Canada’s tariff-rate quota system, which limits product imports.
Despite strong earnings, Stelco cited these trade barriers as key to the need for operational cutbacks and layoffs, stating these would be temporary until a new trade agreement between Canada and the U.S. can be reached.
Canadian Government Response and Legal Considerations
The federal government previously approved Cleveland-Cliffs’s acquisition of Stelco on the condition that existing employment levels for unionized and most non-unionized workers be maintained through 2029. Federal Industry Minister Mélanie Joly has said that market changes cannot justify not meeting these commitments, and stated that Ottawa is considering legal options under Section 40 of the Investment Canada Act. Potential actions include financial penalties, a court order to enforce employment commitments, or requiring a sale of Canadian assets.
Goncalves indicated his willingness to sell Stelco and to challenge the Canadian government in court to defend the layoff plans. He has called on the government to block or severely limit imports of galvanized steel, saying that if this were done, "Stelco can immediately bring back all the temporarily laid-off workers."
Union Reaction and Worker Concerns
Union leaders and workers have expressed confusion and frustration at the layoffs. Ron Wells, of USW Local 1005, called the messaging from Cleveland-Cliffs "confusing," questioning why certain departments would be shut down during a profitable quarter. He also suggested that Cleveland-Cliffs, as a significant importer of steel to Canada, might contribute to the import issue they are criticizing.
Wells called for the government to enforce the commitments under the Investment Canada Act, reflecting workers' sense of underappreciation and concern for their job security amid ongoing trade disputes and company decisions.
Source: cbc.ca.
