Federal Minister Confirms 500 Algoma Steel Jobs Could Be Saved

UPDATE: In a significant development for workers, Industry Minister Mélanie Joly announced that 500 of the 1,000 layoffs at Algoma Steel in Sault Ste. Marie could be reversed by the end of next year. During her visit to the steel mill on Friday, Joly confirmed a collaborative commitment from both the company and its unions aimed at preserving jobs amid a major operational shift.

The layoffs, expected to take effect in March 2026, are part of Algoma Steel’s transition to electric steelmaking, a move hastened by ongoing trade tensions with the U.S. Joly stated that the federal government is prepared to provide $500 million in financial support to facilitate the company’s plan to establish a new plate mill, aimed at securing defense contracts, and a structural beams production plant to diversify its customer base.

“This will make Algoma and Sault Ste. Marie less dependent on the west,” Joly emphasized. She noted the previous business model relied heavily on sending steel at a lower cost to U.S. automakers, a situation that made the mill vulnerable.

In addition to job preservation, Joly highlighted that all employees affected by the layoffs will have access to re-training programs. “This way, they can be supported while they’re getting trained to either go back to work at Algoma or explore opportunities in other trades, including construction,” she said.

Just this past Monday, layoff notices were issued to approximately 1,000 of Algoma’s 2,800 workers as the mill prepared to shut down its blast furnace and coke-making operations. The transition to electric steelmaking is now one year ahead of schedule, a decision attributed to the pressing need to adapt to changing market conditions.

Joly pointed to the government’s “Buy Canadian Policy” as a vital boost for Algoma Steel, noting a surge in inquiries from shipyards nationwide. Federal actions, such as blocking foreign steel shipments, have further increased demand for products from the Sault Ste. Marie mill.

When questioned about the timing of the rehiring announcement, Joly expressed her frustration, stating she learned of the impending layoffs just the night before. “I know there’s no trust between the union and the company. We’re all in this together,” she added, acknowledging the challenges posed by American tariffs.

Looking ahead, Joly confirmed that a detailed business plan outlining Algoma Steel’s proposed transition will be unveiled in January. This plan is expected to clarify the future of both the company and its workforce, offering hope to the community as they navigate these uncertain times.

The urgency of this situation is palpable as Algoma Steel and its workers stand at a critical crossroads, with the potential for substantial job recovery on the horizon.