Northern Ontario Steel Mill Lays Off 1,000 Workers
Algoma Steel has announced significant layoffs at its facility in Sault Ste. Marie, Ontario. The company issued layoff notices to approximately 1,000 workers as part of its transition strategy. This move follows the shutdown of its blast furnace and coke-making operations.
Northern Ontario Steel Mill Layoffs Impact Workers
According to the company, these layoffs will take effect in 16 weeks, on March 23, 2026. This decision is driven by the need to adapt to changing market conditions, including unprecedented tariffs imposed by the United States, which have drastically changed the competitive environment for Canadian steel producers.
Details of the Layoffs
- Number of Layoffs: About 1,000 workers.
- Effective Date: March 23, 2026.
- Union Involvement: Approximately 900 union members received layoff notices.
- Transition Plan: Shift to an electric arc furnace set to begin early in 2026.
Mike Da Prat, president of United Steelworkers Local 2251, confirmed that many affected were union members. He noted that long-term job security remains uncertain as errors were found in the layoff list, leading to confusion among workers.
Future Outlook for Algoma Steel
Algoma Steel has previously been supported by $500 million in government loans aimed at safeguarding jobs amid U.S. tariffs. The anticipated transition to an electric arc furnace was initially planned for a later date but has been moved forward by about a year.
Da Prat highlighted ongoing discussions about mitigation strategies for displaced workers. These include programs designed to retrain and support affected staff in the evolving manufacturing landscape. He acknowledged the significant impact these layoffs will have on the local economy, expressing concerns over potential job availability in Northern Ontario.
As Algoma Steel navigates these changes, the future of the facility and its workforce remains a key concern for both employees and local residents.
