NANTICOKE—Over 60 Lake Erie Works employees are expected to lose their jobs this month as Stelco restructures its Ontario operations, in addition to 350 workers being laid off at its Hamilton plant this week, putting new scrutiny on employment promises made when Cleveland-Cliffs purchased the Canadian steelmaker.
John McElroy, President of United Steelworkers Local 8782, told The Haldimand Press the expected layoffs in Nanticoke will affect workers in the pickle line facility, with two lines to be closed and a third on reduced hours. Hamilton is seeing the closure of cold mill and coating departments.
The layoffs were described to the union as “indefinitely,” McElroy said.
McElroy said approximately 20 full-time production positions are currently available in the main Lake Erie Works plant for affected workers, including employees from USW Local 1005 in Hamilton.
The reductions are part of a larger restructuring of Stelco’s Ontario operations. Public reporting has indicated as many as 500 employees could be affected across Hamilton and Nanticoke, although an exact number for Lake Erie Works has not been publicly confirmed by the company.
Cleveland-Cliffs/Stelco did not respond to The Press’s request for comment.
The layoffs have raised questions about commitments Cleveland-Cliffs made when the US-based company acquired Stelco.
McElroy said those commitments included maintaining the company’s unionized workforce for five years.
“It’s been not even two,” he said, adding the union has asked the federal government to take action.
Haldimand-Norfolk MP Leslyn Lewis confirmed the federal government approved Cleveland-Cliffs’ acquisition of Stelco under the Investment Canada Act subject to binding five-year commitments. Those included maintaining at least the same number of unionized employees and the vast majority of non-unionized workers employed when the transaction was announced.
Lewis said she has written to the federal government seeking information on whether those requirements are being met: “Given the layoffs, I believe the federal government must determine whether Cleveland-Cliffs remains in compliance with those commitments and, if it is not, use the enforcement mechanisms available to it,” she said.
After Lewis spoke to The Press, Industry Minister Mélanie Joly wrote to Cleveland-Cliffs on Monday, October 4, 2026 with an ultimatum: Provide a compliance plan within five days or face legal action.
Lewis has also asked Ottawa to disclose what financial assistance has been provided and whether conditions involving employment, production, investment, or repayment were attached.
“I am concerned about any further reductions at Nanticoke,” Lewis said. “This facility is an important employer in our region and an important part of Canada’s domestic steelmaking capacity.”
The local job losses have also drawn calls for action from Haldimand-Norfolk MPP Bobbi Ann Brady and Haldimand Mayor Shelley Ann Bentley.
In an October 1, 2026 letter to Premier Doug Ford, Economic Development Minister Vic Fedeli, and Labour Minister Trevor Jones, Brady questioned what the provincial government has done through its economic relationships with the United States to protect Ontario steel jobs.
She asked whether Ford or members of his government have directly engaged Cleveland-Cliffs leadership about the reductions, and whether Ontario has used relationships with American governors, federal officials, or business leaders to advocate for Stelco’s Canadian operations.
“If Ontario is serious about protecting its manufacturing base and steel industry, this is precisely the kind of situation in which those relationships should be put to work,” Brady wrote.
Brady also called on the province to work with Ottawa, Haldimand County, the union, and Stelco to examine options for protecting employment and maintaining steelmaking operations at Lake Erie Works.
“Workers should not be left to carry the consequences of international trade disputes and corporate decisions on their own,” she wrote.
Bentley called the job losses deeply concerning, describing Lake Erie Works as a cornerstone of Haldimand County’s economy.
She said she has written to Prime Minister Mark Carney and Ford asking both governments to engage Cleveland-Cliffs and the union, review commitments made during the acquisition, examine options for protecting jobs, and provide retraining and transition assistance to affected workers.
“We need to protect our good-paying jobs in Haldimand County,” she said. “I stand with the workers affected.”
“I want workers and their families to know that their community recognizes the important contribution they make to Haldimand County,” continued Bentley. “Steelmaking has been part of our community for generations, and I will continue to support a strong future for the steel industry in Nanticoke and the good jobs and economic opportunities it provides.”
For workers, uncertainty remains over how many employees will ultimately be affected and whether further reductions could follow.
McElroy said the 20 available production positions provide an opportunity for some affected workers but are far fewer than the number expected to be displaced locally and at the Hamilton plant.
For Lewis, the situation goes beyond the immediate layoffs.
“More broadly, Canada needs a strong domestic steel industry,” she said. “Ottawa should be focused on creating the conditions that allow Canadian steel producers to remain competitive, protecting Canadian production capacity, and ensuring that commitments made to Canadian workers are honoured.”
