Stelco layoffs of up to 500 workers in Hamilton and Nanticoke deepen steel job losses as Ottawa threatens legal action
CBC reported on 18 October that laid-off Stelco workers are not alone as steel jobs disappear across the sector. Stelco, owned by Cleveland-Cliffs, plans to lay off up to 500 workers in Hamilton and Nanticoke, Ont., and cited U.S. tariffs and weak demand, according to The Globe and Mail and BNN Bloomberg. The Hamilton cold-rolled and coated operations are being idled indefinitely, and Nanticoke layoffs take effect on 24 October. Industry Minister Mélanie Joly warned of forced divestment if the layoffs go ahead, the Globe reported. Cleveland-Cliffs CEO Lourenco Goncalves told CBC he is prepared to fight Canada in court.
The dispute tests whether commitments made in a 2024 takeover can be enforced against a U.S. owner during a trade fight. It also shows how tariffs on steel pass through to jobs in Ontario plants.
Workers and suppliers in Hamilton and Nanticoke are directly affected, and communities relying on steel payrolls may see knock-on effects. Federal enforcement could set a precedent for other foreign takeovers.
The company says it has every legal right to idle the plant and that workers would be recalled if Canada and the U.S. reach a steel trade deal.
Ottawa and the union say the cuts break job commitments tied to the 2024 purchase, and the union called the company's rationale disingenuous and contradictory.
Confirmed: up to 500 layoffs, Ottawa's threats and the company's refusal to back down. Not confirmed: whether any court action starts or the exact number laid off. Watch for a federal move on enforcement before the Nanticoke cuts on 24 October.
DailyDrop Canada edition No. 15 · Morning · MON., OCT. 19, 2026