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Algoma 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.
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Sudbury StarReposted by 
Toronto Sun
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.
·Sudbury, Canada
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Algoma Steel CEO: Feds knew about plans for layoffs before giving $400M loan
The head of Algoma Steel says the federal government and Government of Ontario knew the company’s business plan included a re-tooling of its Sault Ste. Marie plant that would result in layoffs before they agreed to half a billion dollars in loan assistance to help the company weather the storm of U.S. tariffs.
·Canada
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Coverage Details
Total News Sources14
Leaning Left4Leaning Right3Center2Last UpdatedBias Distribution45% Left
Bias Distribution
- 45% of the sources lean Left
45% Left
L 45%
C 22%
R 33%
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