Stelco Failed to Seek Provincial Aid Before Axing 500 Jobs, Government Claims
Ontario Finance Minister Peter Bethlenfalvy says Stelco didn’t apply for any provincial tariff relief before laying off hundreds of workers, a decision the head of a steelworkers union called shocking.
Bethlenfalvy said Tuesday that Stelco did not apply for aid aimed at businesses hit hard by Donald Trump’s tariffs before deciding to shut its cold mill and coating lines in Hamilton effective Oct. 9, leaving up to 500 workers facing layoffs.
“They weren’t interested, is my understanding,” he told reporters at the legislature, a day after Stelco’s announcement.
Stelco parent company Cleveland-Cliffs didn’t immediately reply to a request for comment.
“It’s unfortunate because that’s what we’ve done for Algoma,” Bethlenfalvy added in reference to $100 million in loans to the Sault Ste. Marie steel maker as it transitions to electric arc furnaces. The company announced 1,000 layoffs after the loan was approved.
“But we stand at the ready … our door is always open,” Bethlenfalvy said.
The head of the United Steelworkers (USW) Canadian division blasted Lourenco Goncalves, CEO of Stelco’s U.S.-based parent company Cleveland-Cliffs, for the decision not to apply for Ontario’s financial aid.
“I’m shocked. He’s been supporting Trump’s tariffs all along. You’d think the very least he would do is take whatever help he can get to help his Canadian workers affected by these tariffs,” said USW Canada head Marty Warren.
In announcing the layoffs Monday, the company cited market conditions, including low steel prices and U.S. tariffs.
Bethlenfalvy described the Hamilton shutdown as “a business decision” by Stelco.
“Together, with the federal government, we’ve been working very closely and collaboratively to make sure that we can help companies like Stelco.”
The finance minister said he’s not aware of any other major companies about to close operations, but added “of course this is challenging times” and noted the federal government is funding assistance with money raised through counter-tariffs on American goods.
“I know businesses are pivoting and reorienting themselves to expand their markets,” Bethlenfalvy said.
New Democrat MPP Jamie West (Sudbury) said the Stelco jobs lost in Hamilton — and the idled Stellantis auto assembly plant in Brampton — make a mockery of Premier Doug Ford’s multi-million dollar series of “Protect Ontario” advertisements.
Workers are “sick and tired of seeing these Protect Ontario ads but not seeing any workers protected,” West said.
“Families in Hamilton are devastated by the news about what’s happening. The world has turned upside down and the price of everything has gone up.”
But West questioned the prospects of government financial aid if it does not come with stringent conditions for corporations.
“Algoma Steel was given $100 million by the province, basically with no strings attached,” he said in a reference to the layoffs. “Doug Ford has dropped the ball.”
This article was first reported by The Star
