Algoma Steel has announced the issuance of 1,000 layoff notices to employees at its Sault Ste. Marie, Ontario facility. The company stated that this decision comes as part of the closure of its blast furnace and coke making operations, with the layoffs set to take effect in 16 weeks on March 23, 2026. Algoma emphasized that this transition is crucial to safeguard its future in light of significant market challenges and emphasized the need for a fair trading environment for Canadian steel.
The company cited the impact of unprecedented tariffs imposed by the United States as a key factor that has significantly reshaped the competitive landscape. The ongoing shift from blast furnace and coke-making operations to an electric arc furnace, which was accelerated to early 2026, a year ahead of schedule, was expected to result in layoffs. Algoma Steel recently secured $500 million in government loans to help protect jobs amidst the challenges posed by U.S. tariffs.
Mike Da Prat, representing United Steelworkers Local 2251, disclosed that 900 members received layoff notices. However, he expressed uncertainty about the permanency of these job cuts, noting discrepancies in the list and receiving concerns from affected workers. Da Prat mentioned ongoing efforts between the union and the company to implement mitigation strategies, such as a trades helper program for displaced employees.
Acknowledging the inevitable reduction in manufacturing activities in Sault Ste. Marie due to the layoffs affecting one-third of the Algoma Steel workforce, Da Prat expressed concerns about the job market’s capacity in northern Ontario to absorb the displaced workers. Bill Slater, president of the office and professional union at Algoma Steel Local 2724, anticipates potential layoffs for 150 members, highlighting the significant impact of the collective job losses on the workforce.
Slater raised concerns over the lack of linkage between the federal loan provided to Algoma Steel and employment figures, advocating for measures to tie financial support to preserving jobs. The layoffs mark a challenging period for the steel industry in Canada, with companies like Algoma Steel navigating complex market dynamics and regulatory pressures.