Rogers tv Community News
Sault Ste. Marie's Steelworkers Union President talks about Algoma Steel Layoffs
On December 1st, 2025, Algoma Steel announced plans to lay off approximately 1,000 workers, representing roughly 40 per cent of its workforce, with layoffs expected to take effect in March 2026.
The company said the decision was tied to worsening market conditions, declining steel demand, and the early shutdown of its blast furnace operations as it accelerates its transition to electric arc furnace steelmaking. While the move toward EAF technology has been promoted as a greener, long-term strategy, it also requires far fewer workers, compressing what might have been a gradual workforce reduction into a sudden and deeply disruptive job loss.
The layoffs come despite Algoma receiving significant financial support from both the federal and Ontario governments in recent years to help modernize operations and reduce emissions. Union leaders and policy analysts have pointed out that this public funding did not include firm job-retention guarantees, raising questions about how governments support major industrial transitions and how workers are protected when those transitions accelerate faster than expected.
The economic impact of the layoffs extends far beyond the steel plant gates. Economists and local leaders warn that for every job lost at Algoma, additional jobs are affected across the local economy, including contractors, suppliers, transportation, retail, and service industries. Estimates suggest that the total economic impact could affect several thousand workers when indirect and induced job losses are included. Reduced household income also threatens local businesses, housing stability, and municipal revenues, intensifying concerns about long-term economic health in Sault Ste. Marie.
We talked to Local Steelworkers Union President Mike De Prat about the workers reaction to the layoffs and the impact it will have on the community.
Full Interview with Mike can be found here-https://www.youtube.com/watch?v=mEwX33MIQV4&t
