Steel Plant Layoffs in Eastern Ontario: Unions Demand Immediate Government Intervention
In response to the announcement of significant layoffs at Ivaco Rolling Mills in L'Orignal, Eastern Ontario, unions representing steel and aluminum workers are demanding urgent government action to protect jobs and support the local economy. The layoffs, attributed to new U.S. tariffs, have caused widespread concern among workers, with some fearing the long-term impact on the region's economy.
The Impact of U.S. Tariffs on Canadian Steel Industry
On March 11, 2025, the United States reinstated a 25% tariff on steel and aluminum imports from Canada, a move that has caused significant disruption in the Canadian steel sector. Ivaco Rolling Mills, part of the Canada Metal Processing Group (MPG), has cited these tariffs and a lack of incoming orders as the primary reasons for the layoffs.
As part of MPG’s workforce reduction, the Ivaco facility, located just east of Ottawa, laid off 30 employees permanently and placed over 120 workers on temporary one-week layoffs. These job cuts come on the heels of a challenging few months for the steel industry, as rising trade barriers and reduced orders continue to strain operations. Ivaco Rolling Mills, a key supplier of hot-rolled wire rods and steel billets for industries like construction, automotive, and machinery, has seen a direct impact on its production capacity due to these external economic pressures.
Union Response: Calls for Government Action
Union representatives, including those from the United Steelworkers (USW) and the Canadian Labour Congress (CLC), have strongly criticized the government's inaction and are calling for swift intervention. Bae Bruske, president of the CLC, emphasized the urgency of the situation, stating that “the government has the ability to act now… to make changes to Employment Insurance before an election is called or even during the term of an election.”
Joey Berniquer, a worker at Ivaco Rolling Mills, expressed growing anxiety within the workforce. “Everything is up in the air for, basically, everybody at the work and in the community as well,” said Berniquer. “April 2 will be a big date. There’s a lot of anxiety at the plant.”
The unions are urging political leaders across Canada to prioritize worker welfare, with a specific focus on safeguarding the social safety net and supporting those impacted by layoffs. Richard Leblanc, a USW area coordinator, pointed out the broader impact of the layoffs on local businesses, which are already struggling due to the plant’s reduced operations.
Local Economic Impact of Steel Plant Layoffs
Ivaco Rolling Mills is one of the largest employers in the region, with over 470 workers across its three facilities. The layoffs have not only caused distress among the workers but also have raised concerns about the future of the local economy in L'Orignal and surrounding areas. According to Leblanc, “In just two weeks, over 150 jobs have been slashed, that’s mothers, fathers, neighbors who now have to figure out how they are going to pay the bills.”
The Canadian Steel Producers Association has warned that Canada exports approximately 10 million metric tons of steel to the U.S. annually, supporting over 23,000 jobs. With the reinstatement of tariffs, the Canadian steel sector could face even more significant challenges. As the local economy of Hawkesbury and L'Orignal begins to feel the effects, the unions are calling for urgent measures to prevent further economic decline.
The Broader Economic Implications of U.S. Tariffs
The U.S. tariffs, which are part of former President Donald Trump’s broader trade strategy, are meant to protect American steel and aluminum industries by making foreign imports more expensive. However, these tariffs have created a ripple effect in Canada’s steel sector, where manufacturers like Ivaco Rolling Mills depend on a steady flow of orders from the U.S. to remain profitable.
The tariffs are also expected to affect other sectors that rely on steel products, including construction, infrastructure, and manufacturing. As the steel industry absorbs the impact of these duties, other industries may follow suit with cost increases that could eventually be passed on to consumers.
The Need for Immediate Action
In light of these developments, unions are pushing for immediate support from the Canadian government to protect workers and secure the future of the steel industry. Calls for government intervention have centered on measures to enhance the safety net for workers, including changes to Employment Insurance and financial assistance for affected communities.
The unions are also advocating for the Canadian government to engage in more assertive diplomatic negotiations with the U.S. to remove or reduce the tariffs. At the same time, they are urging the government to take action to boost domestic demand for steel and create new opportunities for Canadian manufacturers.
KEY TAKEAWAYS
• Ivaco Rolling Mills Layoffs: Ivaco Rolling Mills, located in L'Orignal, Ontario, has laid off 30 workers permanently and placed 120 others on temporary one-week layoffs due to the impact of U.S. tariffs.
• Tariff Impact: The reinstatement of a 25% U.S. tariff on steel imports has led to job losses in the Canadian steel industry, with many workers in the sector now facing uncertainty about their employment.
• Union Demands: Unions, including the United Steelworkers (USW) and Canadian Labour Congress (CLC), are demanding immediate government intervention to support workers and communities affected by the layoffs.
• Local Economic Impact: The layoffs at Ivaco Rolling Mills will negatively impact local businesses and services, contributing to economic downturns in L'Orignal and surrounding communities.
• Canada’s Steel Exports: Canada exports about 10 million metric tons of steel to the U.S. annually, supporting approximately 23,000 Canadian jobs in the steel sector.
• Government Action: The unions are calling for changes to Employment Insurance and stronger government support for workers, as well as negotiations with the U.S. to remove the tariffs.
• Broader Economic Concerns: The tariffs not only affect the steel industry but also pose risks to other sectors that rely on steel, such as construction and manufacturing, potentially leading to higher costs for consumers.
As the steel sector grapples with these challenges, the unions are urging political leaders to act swiftly and decisively to protect Canadian workers and the broader economy.
