The Hamilton layoffs will affect employees in the plant’s cold mill and coating departments. Additional job cuts are expected at Lake Erie Works in Nanticoke, Ontario. 

Cleveland-Cliffs, which acquired Stelco in 2024, said it expects to offer positions at Lake Erie Works to a significant number of employees affected by the Hamilton shutdown. The United Steelworkers, however, said there are currently few available positions at the Nanticoke facility. 

The Ohio-based company has cited U.S. tariffs on Canadian steel and aluminum, lower steel prices and competition from lower-cost foreign imports as factors behind the decision. 

The layoffs have drawn opposition from United Steelworkers Locals 1005 and 8782, which represent Stelco employees. The union said Cleveland-Cliffs made binding commitments when it acquired Stelco to maintain the same number of unionized workers in Canada for at least five years. 

The union contends that those commitments were a condition of federal approval of the transaction and has called on the federal government to enforce them under the Canada Investment Act. 

Prime Minister Mark Carney said the federal government will use Canadian law to respond to the Stelco layoffs and examine what measures can be taken.