Algoma Steel reports the issuance of layoff notices to approximately 1,000 employees at its Sault Ste. Marie facility. The company cites the closure of its blast furnace and coke making operations as the reason for the layoffs, effective in 16 weeks on March 23, 2026. This decision is deemed essential to safeguard Algoma’s future amidst significant market challenges. The company emphasizes the need for a competitive and equitable trading environment for Canadian steel.
The impact of “unprecedented tariffs imposed by the United States” has been highlighted, leading to a significant shift in the competitive landscape. The steel mill’s transition to an electric arc furnace ahead of schedule has accelerated the need for layoffs, with some already anticipated. Algoma Steel recently secured $500 million in government loans to mitigate the effects of U.S. tariffs on jobs.
Mike Da Prat, president of United Steelworkers Local 2251 representing a majority of Algoma Steel’s workforce, confirmed that 900 members received layoff notices. He expressed uncertainty about the permanence of these job cuts, noting discrepancies in the list and receiving concerned calls from members. Discussions about the potential job reductions began during the 2022 contract negotiations, with efforts made by the union and the company to implement mitigation strategies, such as a trades helper program for displaced workers.
Da Prat acknowledged the inevitable downsizing of the manufacturing industry in Sault Ste. Marie, foreseeing challenges in job absorption in northern Ontario. Bill Slater, president of the office and professional union at Algoma Steel Local 2724, mentioned the possibility of 150 layoffs within his union. He expressed concerns over the simultaneous layoff of a substantial number of employees and highlighted the rejection of tying federal government loans to employment figures.
The layoffs at Algoma Steel come amidst ongoing trade disputes, impacting the workforce and local economy significantly.