Layoffs at Stelco underway, and will roll out over 3 weeks, says union

Layoffs at Hamilton’s Stelco steel plant are underway and expected to roll out over three weeks.

Not all workers have been formally notified, said Ron Wells, president of United Steelworkers Local 1005, which covers Stelco workers in Hamilton. But he said “people have a general idea” of whether or not their job is on the line.

Wells said Wednesday that a batch of layoffs is expected this week, with another the following week and a final group the week after that. One worker, Jordan Williams, told CBC Hamilton that he received his notice on Wednesday, coming into effect Sunday.

In total, Wells expects 300 to 350 layoffs in Hamilton, with more at Stelco’s Lake Erie Works in Nanticoke, which is covered by a different union local.

Wells explained that new rules in Ontario’s Employment Standards Act mean the company doesn’t have to give advance notice of a temporary layoff shorter than 35 weeks, so people could get their notice and be laid off on the same day.

Ron Wells, president of USW Local 1005, says he is ‘disgusted’ by the decision to lay off approximately 350 workers. (Meagan Fitzpatrick/CBC)

“If it becomes permanent, like after 35 weeks, they would have to add those 12 weeks to any severance pay owing,” he told CBC Hamilton, adding that the laid-off workers would retain their medical benefits for the time being.

“People are obviously worried about the future. How you going to pay the bills?… But the overriding emotion is anger,” Wells said. “I think almost all the workers I’ve talked to, they feel that this shutdown and layoff isn’t necessary. There’s a market out there for our product and we’re being used as pawns in a political game.”

Wells believes Stelco owner Cleveland-Cliffs, whose CEO Lourenco Goncalves has expressed support for tariffs and for U.S. President Donald Trump, is eager to make it appear as though Trump’s tariffs are working, ahead of midterm elections in the U.S.

“I hope, basically, the federal government makes an example out of them,” Wells said. “We just want to make sure they … follow through with it.”

Industry Minister Mélanie Joly warned on Monday that Stelco had five business days to share a plan to keep jobs or the government would launch legal action under the Investment Canada Act.

In a previous interview with CBC News, Goncalves defended his right to idle production.

“We had the ability to sell into the United States,” he said at the time. “That was an underlying condition for me to acquire Stelco.

“I would not have acquired the Stelco if I knew that Canada and the United States would become what they became — enemies in trade.”

CBC Hamilton contacted Stelco to ask if the company plans to meet the government’s deadline, but did not hear back.

Local tradespeople eye impact of layoffs, look to help

Wells said that for every unemployed steel worker, there are up to five other jobs that could now be on the line. Bernard Tompkins, who works for a contractor that does equipment maintenance at Stelco, said Wednesday that…