Story perspectives

Algoma Steel to Lay Off 1,000 Amid Tariffs

12/2/2025

Summary

Algoma Steel Layoffs

Algoma Steel plans to lay off 1,000 employees at its Sault Ste. Marie, Ontario facility, effective March 23, 2026, due to U.S. tariffs and the accelerated switch to Electric Arc Furnace (EAF) technology.
Union leaders specify about 900 positions from Local 2251 and 150 from Local 2724 will be affected.
The company reports losses and will receive $500 million in government support to aid impacted workers.

Summary

Sheehan Supports Workers

The layoffs will affect roughly 1,000 Algoma Steel workers, about 40% of the workforce.
Local MP Terry Sheehan pledged to support workers by coordinating with unions and government agencies.
Federal Opposition Leader Pierre Poilievre criticized Prime Minister Mark Carney for failing to protect jobs and called the layoffs a "bait-and-switch."
Industry Minister Mélanie Joly vowed to advocate for workers and condemn U.S. tariffs and the higher industrial carbon tax.

History

Historical Context

The Canada-U.S. Free Trade Agreement, signed in 1984, reshaped trade dynamics, intensifying competition for Canadian industries like Algoma Steel. Founded in 1901, Algoma has faced multiple financial restructurings, including two bankruptcies in the 1990s and 2000s. The recent layoffs of 1,000 workers underscore ongoing challenges in adapting to U.S. tariffs and technological changes in steel production, impacting labor and government roles in industry.

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Algoma Steel Layoffs

Algoma Steel plans to lay off 1,000 employees at its Sault Ste. Marie, Ontario facility, effective March 23, 2026, due to U.S. tariffs and the accelerated switch to Electric Arc Furnace (EAF) technology.
Union leaders specify about 900 positions from Local 2251 and 150 from Local 2724 will be affected.
The company reports losses and will receive $500 million in government support to aid impacted workers.

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