Sep 30, 2026
Stelco never applied for Ontario’s tariff relief before announcing it would lay off up to 500 workers, according to Ontario Finance Minister Peter Bethlenfalvy. Bethlenfalvy said the company skipped aid meant for businesses hit by U.S. tariffs before deciding to shut its Hamilton cold mill and coating lines, effective Oct. 9.
“They weren’t interested is my understanding,” Bethlenfalvy told CHCH News, pointing out that the province had already provided financial support to Algoma Steel. Mark Carney’s government says Stelco turned down federal help, too. Industry Minister Mélanie Joly told CBC News the company’s “decision to reject these practical proposals and continue with layoffs is extremely disappointing.”
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Stelco, a Hamilton-based steelmaker owned since November 2024 by Ohio-based Cleveland-Cliffs Inc., announced the cuts Sept. 28 at its Hamilton and Lake Erie facilities. It cited the trade crisis, weak demand and continued import pressure.
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For affected workers, the aid that Stelco passed up is no longer available. What’s left is the support designed for workers themselves, and some of it has deadlines, too.
Who is affected by the Stelco layoffs?
The layoffs take effect Oct. 9 in Hamilton and Oct. 24 at the Nanticoke, ON facility. Ron Wells, president of United Steelworkers (USW) Local 1005, estimates that 350 Hamilton steelworkers will lose work, with no indication for how long.
The cuts sting partly because of past promises. When the federal government approved the sale, Cleveland-Cliffs was required to keep at least the same number of unionized employees for five years, according to an October 2024 ministerial statement. The cuts to Stelco come in the wake of planned cuts of more than 1,000 jobs at Algoma Steel in Sault Ste. Marie, ON.
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Why does skipping tariff aid matter?
Most tariff aid flows to employers so they can keep people on payroll and avoid layoffs. Ottawa’s $7.5 billion package, announced Aug. 25, loosened terms on the $10 billion Large Enterprise Tariff Loan facility for big employers. It also created a Workforce Retention and Retraining Program that incorporates Work-Sharing.
Workers are not able to apply for those programs themselves. Bethlenfalvy called the shutdown “a business decision.” What workers can do, however, is control is the income-side support meant for them.
How much Employment Insurance can laid-off workers get?
Employment Insurance (EI) regular benefits generally replace 55% of average insurable weekly earnings. The maximum insurable earnings for the 2026 tax year is $68,900, which works out to a maximum of about $729 a week before tax.
Three temporary rules are significant here:
- The one-week waiting period is waived
- Severance and other separation payments are not deducted first
- Long-tenured workers get up to 20 extra weeks of benefits
These ‘temporary’ measures were due to end Oct. 10, 2026, one day after the Hamilton layoffs. In an Aug. 25 statement, the Department of Finance Canada said it would extend the waiting-period and severance measures by one year and the extra weeks by eight months. The exact timeline is set by regulation, so confirm with Service Canada if you are looking into applying.
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For example, a long-serving steelworker earning $80,000 a year would hit the insurable cap and could collect about $729 a week. Under the rules as they currently exist, severance wouldn’t delay that first payment. The waived waiting week alone is worth up to $729.
Is it a temporary layoff or a termination?
Under Ontario’s Employment Standards Act (ESA), a layoff of up to 13 weeks in any 20 consecutive weeks is considered temporary. This timeline can stretch to less than 35 weeks in 52 under conditions such as continued benefit or pension contributions. After that it becomes a deemed termination, which can trigger termination pay. At large employers, this transition can trigger severance pay as well. For unionized workers with recall rights, the 35-week limit likely applies.
Either way, once it runs out, a temporary layoff can become a payout.
Stelco and Cleveland-Cliffs made their choice when they turned down government tariff support and opted for layoffs instead. For up to 500 affected steelworkers, that corporate decision shifts the burden from the company directly onto the household budgets of their workers. With aid meant for employers off the table, workers’ focus must shift to the safety nets built for them — filing early, monitoring their layoff timeline and maximizing every week of available benefit support.
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
