Photo supplied by Office of Leslyn Lewis
Haldimand-Norfolk MP Leslyn Lewis is seeking answers from the federal government about what Stelco’s restructuring could mean for workers and operations at Lake Erie Works in Nanticoke.
Lewis has written to Industry Minister Mélanie Joly asking for details about commitments made when Cleveland-Cliffs acquired Stelco in 2024, including any employment, investment and operating commitments tied to the acquisition.
Her letter comes after Stelco announced plans to indefinitely idle finishing operations at its Hamilton facilities, a move the company says could affect up to 500 workers.
Stelco says the restructuring will see more production concentrated at Lake Erie Works in Nanticoke.
The company cited the impact of U.S. tariffs and a significant decline in demand for cold rolled and galvanized steel products as reasons for the decision.
According to Stelco, demand for those products in the markets it traditionally serves declined by almost 25 per cent in the second quarter of 2026 compared with the quarterly average in 2024, including a 10 per cent decline in Canadian market demand.
The company has said federal measures have reduced imports into Canada, but remaining import volumes are still too high to fully offset the impact of ongoing trade tensions with the United States.
Stelco says its overall steel production tonnage will not be affected by the changes, although its product mix will change.
Company spokesperson Pat Persico previously said a “significant” number of workers affected by the Hamilton shutdown are expected to have opportunities to move to Lake Erie Works.
“Job opportunities at Lake Erie Works will be offered to Hamilton employees,” Persico said in a statement.
Lewis’ letter asks the federal government for clarification on how many employees at Hamilton Works and Lake Erie Works are expected to be laid off or otherwise affected, and whether any existing Nanticoke positions could be eliminated or displaced as a result of the restructuring.
She is also asking what changes are expected in production, staffing and investment at Lake Erie Works and how many positions could be available to Hamilton workers transferring to Nanticoke.
A major focus of the letter is what commitments were made when Cleveland-Cliffs acquired Stelco.
Lewis is asking whether the federal government provided any grants, loans, loan guarantees, tax concessions or other financial assistance connected to the acquisition, and what conditions were attached to that support.
She also wants to know whether commitments were made concerning employment levels, layoffs, capital investment, production and the continued operation of Stelco’s Canadian facilities.
Lewis is asking whether those commitments applied separately to Hamilton Works and Lake Erie Works or to Stelco’s Canadian workforce as a whole, as well as how long the commitments were in place and what mechanisms exist to enforce them.
The MP is also asking whether the federal government has approved any changes, waivers or releases involving those commitments since the acquisition.
She wants to know whether the government has assessed whether the announced restructuring and workforce reductions comply with the commitments and whether any enforcement action is being considered.
Lewis is also calling on the federal government to explain what steps it is taking with Stelco, union representatives and the Ontario government to protect affected workers and preserve the long-term operation of Lake Erie Works.
In her letter, Lewis says the Nanticoke facility has been a cornerstone of the local economy since it was commissioned in 1980, providing skilled employment and supporting local families, suppliers and businesses.
She is requesting copies of relevant agreements and undertakings where permitted and has asked for a written response within 15 business days.
The restructuring comes as Canada’s steel industry continues to face pressure from U.S. tariffs and weaker demand. Algoma Steel has announced plans to lay off more than 1,000 workers, while ArcelorMittal Long Products Canada has announced the closure of a Hamilton wire-drawing mill affecting 153 employees.
For Haldimand-Norfolk, the Stelco changes could mean Lake Erie Works takes on a larger role in the company’s operations, while questions remain about how the restructuring will affect existing Nanticoke workers and the facility’s future.
