Algoma Steel has announced significant layoffs, affecting over 1,000 employees as it prepares for a transition in its manufacturing processes. The layoffs are set to commence on March 23, 2026, as confirmed by union leaders from Local 2724 and Local 2251.
Details of the Layoffs
The layoffs are attributed to several factors, including the company’s shift to Electric Arc Furnace (EAF) steelmaking. Bill Slater, president of Local 2724, noted that while the transition was anticipated, tariffs imposed by the U.S. government accelerated these job losses. He expressed concerns about the competitive challenges posed by these tariffs.
Union Responses
- Local 2724 will see a reduction of approximately 150 salaried positions.
- Local 2251 will experience a loss of around 900 positions.
- After the layoffs, Local 2724 will consist of between 250 and 300 members.
- Local 2251 is expected to have around 1,900 members post-layoffs.
Both union leaders have acknowledged the impact of U.S. tariffs on their operations. Laura Devoni, vice-president of Human Resources and Corporate Affairs at Algoma Steel, stated that these tariffs fundamentally changed the competitive landscape for Canadian steel manufacturers.
Transition Plans
Devoni emphasized the necessity of the transition away from traditional blast furnace operations. “We will transition to Electric Arc Furnace steelmaking in early 2026, ahead of our initial schedule,” she said. This adjustment aims to secure a sustainable future for Algoma Steel amidst challenging market conditions.
Impact on Employees
The layoffs are projected to last for at least 35 weeks. Employees affected will have a choice to either return to their positions or take severance after this period. “If they choose severance, it will be as if they have resigned from the company,” Slater explained.
Devoni has reassured employees that Algoma Steel will collaborate with federal and provincial agencies. The aim is to provide support and resources to those impacted by these layoffs, emphasizing the company’s commitment to the local community of Sault Ste. Marie.
Future Considerations
The announcement of these layoffs has raised concerns about the future workforce and operations at Algoma Steel. The transition to Electric Arc Furnace steelmaking is viewed as a necessary step to adapt to external pressures and maintain competitive viability in the industry.
As Algoma Steel moves forward, the focus will remain on securing a fair market environment for Canadian steel, while supporting the affected workforce through this significant change.
