Sault Ste. Marie steelworkers see layoffs despite $500M loan from province

Despite a $500 million tariff-protection loan from both Ottawa and Queen’s Park, a plan to dole out layoff notices was still in the works at Algoma Steel in Sault Ste. Marie.

The steelmaker’s decision is still sparking wide-spread condemnation from both the union members and politicians.

The local United Steelworkers Union in Sault Ste. Marie say they were well aware about the company transitioning to using electric arc furnaces a few years ago, but what they weren’t expecting were layoffs without career alternatives and are directing blame at both the federal and provincial governments for not adding conditions to the company’s taxpayer loans.

“It wasn’t the case that we wanted the government to give us a job or give us a hand out,” said Mike Da Prat, the president of the United Steelworkers Local 2251. “We feel the governments should put conditions on it and said ‘What are the mitigation strategies?'”

The union in Sault Ste. Marie feels that the $500 million bridge loan should have also included guarantees to help the soon-to-be laid off workers find new jobs or even training for new careers.

“Because there’s no guarantee that there is a secure future here, at least for the 900,” said Da Prat.

Da Prat says says about 900 union members working at Algoma Steel will be laid off starting in March, leaving workers anxious and stressed ahead of the holiday season.

This week the steel making company announced it was handing out notices to more than a thousand employees, less than a month of receiving the government assistance, in order to fight off U.S. tariffs and transition from a blast furnace and coke-making operations to a greener, electric production.

However, the company’s CEO and Ontario Premier Doug Ford admit that layoffs were already in the works before the money was given, which sparked major blowback at Queen’s Park Thursday.

“Those one thousand people who got a pink slip in Sault Ste. Marie are paying the price,” said NDP Opposition Leader Marit Stiles.

READ MORE: Algoma Steel to lay off 1,000 workers in coming months, union says

“Madam Speaker, the only person that should get a pink slip is the Opposition Leader,” said Ford. “She’s the only one who should get one.”

The Ford government maintains that the financing was necessary to keep Algoma Steel operations alive.

“We got our power centres, like our Protect Ontario Workers Group that helps find new jobs, so we are sensitive to the plight many are facing uncertainty right now, and we will be with them every step of the way,” said Ontario’s Finance Minister Peter Bethlenfalvy.

“These layoffs were not supposed to happen this quickly and they (workers) were very hopeful that this money being provided will help come up with alternatives, and shift to other products they could be developing,” said Stiles. “Like for these supposed ‘nation building projects’ that are coming, but where are they — what’s happening?”

CHCH News has reached out to Algoma Steel asking about the timing of the layoff announcement, and if they intend to bring back the impacted workers, or if they will help them transition to new jobs.

The company has not responded yet.

The union told CHCH News that support for transitioning was collectively bargained.

They also say layoffs go into effect on March 23.

READ MORE: Algoma Steel in Sault Ste. Marie to receive $500 million in federal, Ontario loans