Stelco announced Friday that it will recall 175 workers laid off since October after finding enough demand and interest from customers.
The restart of the Hamilton finishing operations will take several weeks, and the workers will be formally brought back to work on Dec. 1.
“Stelco has been in constant communication with our valued customers who have expressed great interest in working with Stelco and a desire for us to provide them with the high-quality products our Hamilton finishing facility is known for producing,” a company announcement read.
Stelco added that the customer commitment was secured against a backdrop of federal inaction to address shortcomings in its tariff response program and a continued flood of offshore imports of galvanized steel products that have eroded the domestic market.
The reversal came after federal Industry Minister Mélanie Joly sent the steelmaker a demand letter on Oct. 22, giving it 15 days to rescind the layoffs, provide detailed justification for the job cuts, or face legal action.
The government’s hard-line stance prompted Cleveland-Cliffs CEO Lourenco Goncalves to back down, saying he hoped to bring back laid-off workers before Christmas if Canadian customers increased their purchases of Canadian steel.
Joly had previously threatened to force the sale of Stelco’s Canadian assets if the company did not abandon its layoff plans.
Stelco announced in September that it would shut down the cold mill and coating departments at its Hamilton facility, laying off as many as 500 workers. The company blamed the cuts on Trump’s 50 per cent tariffs on its cold-rolled and coated steel products, as well as an influx of cheap steel imports into Canada.
The federal government and union members argued that the layoffs violated commitments made under the Investment Canada Act when U.S.-based Cleveland-Cliffs acquired Stelco in 2024, including pledges to keep its headquarters in Hamilton and maintain its unionized workforce.
The fall layoffs upended the lives of hundreds of Stelco workers, including some who had spent two decades at the company, leaving them uncertain how they would make ends meet.
Stelco said Friday that all recalled workers will receive back pay covering the regular wages they lost during their temporary layoffs.
“I would like to thank our valued customers for the faith they have placed in us, and our workers for the patience and resilience they have continued to demonstrate during this challenging period,” said Paul Simon, President of Stelco.
This is a developing story.
