Stelco layoffs a 'betrayal' of Ontario workers, PM Carney says

Prime Minister Mark Carney has accused Stelco of betraying its Ontario workforce, after the Hamilton-based steelmaker announced layoffs just days after securing tariff relief in Washington.

The Liberal leader made the comments during a campaign stop in Hamilton on Friday, where he was joined by local NDP MP Matthew Green.

"I think they've betrayed the workers," Carney told reporters. "I think they've betrayed the community."

The remarks came after CBC News reported that Stelco began laying off workers at its Hamilton and Nanticoke plants on Thursday.

The company said the move is a temporary response to weak market conditions, and that it will recall affected employees when conditions improve.

Stelco, which employs roughly 2,200 people across Ontario, was purchased by Cleveland-Cliffs in November.

The layoffs drew a sharp response from the United Steelworkers union, which represents Stelco employees.

"It's a betrayal of the workers who built this company," said Bill Ferguson, president of USW Local 8782, which represents workers at the Nanticoke facility.

The union said it is reviewing the layoffs and has not ruled out legal action.

The controversy comes amid a federal election campaign in which trade policy and industrial jobs have emerged as central issues.

Carney, who has positioned himself as a defender of Canadian industry against US trade actions, said companies that receive government support have a responsibility to their workers.

"There is a responsibility that comes with that," he said.

The prime minister also said his government would review its relationship with companies that lay off workers after receiving government assistance.

Stelco has said the layoffs are necessary due to challenging market conditions, including soft demand and pricing pressures.

The company has not said how many workers are affected.

Cleveland-Cliffs, Stelco's US-based parent company, did not respond to a request for comment.

The layoffs at Stelco come as Canada's steel sector faces uncertainty from US tariffs, which have been a major issue in the federal election campaign.

Carney's comments mark a significant escalation in the war of words between the federal government and one of Canada's largest steel producers.

The dispute highlights the political sensitivity of industrial job losses in Ontario, a key battleground in the April 28 election.