US EditionAlgoma Steel CEO: Feds knew about plans for layoffs before giving $400M loan
United Steelworkers allege Algoma Steel violated 2023 mitigation agreement amid layoffs of up to 1,000 workers during accelerated shift to electric arc furnace production.
- CEO Michael Garcia said Government of Canada and Government of Ontario knew the retooling would cause layoffs before providing $400 million and $100 million .
- U.S. 50 per cent tariffs cut off Algoma's American market, significantly denting its bottom line and prompting an accelerated Electric Arc Furnace transition with blast furnace and coke-making operations closing in early 2026.
- Union leaders said they filed a grievance, claiming mitigation measures from the 2023 EAF Letter were not created, despite promises, affecting roughly 150 workers from local 2724.
- The company issued layoff notices affecting about 1,000 workers, effective March 23, and Mélanie Joly, Federal Industry Minister, said she is working with unions and company, telling reporters `My point is we'll continue to fight for these jobs`.
- Electric-Arc furnaces produce 3.2 million tonnes versus blast furnaces' two million tonnes, and Michael Garcia warned that once blast furnace jobs end, they will not return; Mélanie Joly said new plants aim to create future jobs.
19 Articles
19 Articles
Steelworkers condemn Algoma's heartless holiday job cuts
SAULT STE. MARIE, Ontario, Dec. 04, 2025 (GLOBE NEWSWIRE) -- Algoma Steel’s devastating announcement of more than 1,000 layoffs will hit workers and Sault Ste. Marie hard on the eve of the holiday season. Not only will this hurt the community, it also is an embarrassment for the federal government, which has supported Algoma during a difficult trade war and transition to new furnaces, the United Steelworkers union (USW) says.
North Bay Nipissing
Steelworkers condemn Algoma’s heartless holiday job cuts
SAULT STE. MARIE, Ontario, Dec. 04, 2025 (GLOBE NEWSWIRE) -- Algoma Steel’s devastating announcement of more than 1,000 layoffs will hit workers and Sault Ste. Marie hard on the eve of the holiday season. Not only will this hurt the…
Sudbury Star
Toronto SunOntario, Ottawa knew of Algoma Steel's layoff plans, CEO says
OTTAWA — Both the provincial and federal governments were aware Algoma Steel planned to conduct layoffs before giving the Sault Ste. Marie company $500 million of taxpayer’s money, the company’s CEO said.
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