In Hamilton, the president of the union at Stelco, Ron Wells, expressed willingness to back a potential federal government acquisition of the steel company, as it moves forward with layoffs that are anticipated to result in the loss of numerous positions. United Steelworkers Local 1005, representing Stelco employees in Hamilton, has long advocated for federal ownership of the steelmaker, currently under the ownership of U.S.-based Cleveland-Cliffs.
Wells stated that the union proposed this idea in 2014 during Stelco’s period of creditor protection, but it went largely unheard. He emphasized the importance of getting members back to work promptly while also considering the complexities involved in a potential government takeover.
Recent developments have seen both the federal and Ontario NDP parties calling for the nationalization of Stelco, inspired by similar actions taken in the United Kingdom earlier this year to bring two steel companies under public ownership.
The federal government is exploring legal action against Cleveland-Cliffs, alleging a breach of commitment made during the company’s acquisition in 2024 to maintain specific levels of unionized and non-unionized workers for a designated period. Cleveland-Cliffs’ CEO, Lourenco Goncalves, defended the layoffs as temporary, intended to last until a trade agreement is reached between Canada and the United States. Goncalves has voiced support for U.S. tariffs on foreign steel imports.
Legal expert Nicolas Lamp from Queen’s University suggested that it might be in Canada’s best interest to assume control of Stelco, emphasizing the need for a company that prioritizes Canadian workers and national interests.
Amid the layoffs, worker Chelsey Mastej shared her shock upon receiving a layoff notice, highlighting discrepancies in the selection process for layoffs. Despite facing uncertainty, Mastej expressed gratitude for her colleagues and their shared camaraderie at Stelco.
Efforts are underway by the local union to support affected workers, including providing guidance on employment insurance applications and potential job retraining opportunities. Union president Wells expressed frustration among workers over job prospects and the perceived injustice of layoffs amidst the global demand for steel.
Plans are in motion for a rally outside Stelco’s gates, urging Cleveland-Cliffs to honor their employment commitments and urging the government to strengthen tariff regulations to safeguard against cheap steel imports. MP John-Paul Danko emphasized the threat posed by American steel imports and pledged government action to hold Cleveland-Cliffs accountable while supporting Canadian workers and promoting domestic steel market growth.