The presidents of both unions – local 2724 and local 2251 – confirmed the layoffs will happen in March 2026
This morning Algoma Steel announced more than 1,000 employees will be laid off in a few months.
SooToday has spoken with the presidents of both unions – local 2724 and local 2251 – who confirmed the layoffs will happen in March 2026.
Bill Slater, president of local 2724, said they knew layoffs were coming because of the introduction of the electric arc furnaces, but U.S. President Donald Trump’s tariffs accelerated the job losses.
“Although we knew the transition to EAF was coming, it would have been at least another year out under normal circumstances, maybe longer,” he said.
Trump’s tariffs “fundamentally altered” the competitive landscape and “sharply limited our ability to access the U.S. market,” said Laura Devoni, vice-president of human resources and corporate affairs at Algoma Steel.
“As a result of these pressures, Algoma has been forced to conclude its long history as an integrated steel manufacturer and close its blast furnace and coke-making operations in early 2026.
“Algoma will transition to Electric Arc Furnace steelmaking at that time, a year earlier than previously anticipated or planned,” Devoni said.
Slater said a large part of the company’s problems stem from not being able to sell in the U.S.
His union is losing 150 salaried workers as of March 23, 2026.
An employee’s years of service will dictate how long they have for recall rights, Slater said.
“You can work somewhere else in the meantime and then make your decision if you get called back whether you want to come back or not.
“Right now the company is anticipating that layoffs will last at least 35 weeks,” he said.
Once employees have been off for 35 weeks they can decide if they want to get severance or not.
“If they do take severance at that time, then they’re basically resigning from the company,” Slater said.
With the loss of 150 workers, his union will be at around 250 to 300 members, Slater said.
Mike De Prat, president of local 2251, is losing 900 workers in March, which will leave around 1,900 members in his union.
De Prat felt that Trump definitely played a role in today’s announcement.
“It’s hard to say. The mitigation strategies were negotiated for the EAF transition, which was before Trump.
“No doubt there is the Trump effect but I can’t translate that to the number of employees affected.”
Devoni said the company has been “significantly impacted by the unprecedented tariffs imposed by the United States.”
“As part of the closure of its blast furnace and coke making operations, Algoma has made the difficult decision to issue approximately 1,000 layoff notices today, effective in 16 weeks on March 23, 2026,” she said.
“This transition is necessary to protect Algoma’s future in the face of these extraordinary and external market forces, and we will continue to advocate for a competitive and fair trading environment for Canadian steel.
“We fully understand how unsettling this news is for our employees, their families, and the broader Sault Ste. Marie community,” Devoni said.
“We are committed to working closely with federal and provincial partners, union leadership, and community agencies over the coming months to provide resources, support, and transition assistance to all affected employees,” she said.
