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Support for Algoma Steel a start but Steelworkers want guarantees and transparency

1. Algoma Steel receives $500 million from federal and Ontario governments. 2. USW emphasizes need for job protection and transparency in funding terms. 3. Lack of diversification investment for Algoma raises concerns for job security. 4. Steelworkers face potential layoffs due to Algoma's transition to EAF. 5. USW advocates for stricter import controls and a comprehensive steel strategy.

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FAQ

Why Neutral?

The government support is crucial but lacks long-term commitments affecting job security.

How important is it?

The funding is significant but lacks conditions for sustainable growth, making its impact moderate.

Why Short Term?

Immediate financial support mitigates short-term risks, but long-term viability remains uncertain.

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SAULT STE. MARIE, Ontario, Sept. 29, 2025 (GLOBE NEWSWIRE) -- The United Steelworkers union (USW) is responding to today’s announcement that the federal government will provide a $400 million loan through the Large Enterprise Tariff Loan facility and the Ontario government’s additional $100 million in financial support to Algoma Steel. While the union welcomes the extension of liquidity to support Algoma in the short term, it stresses the need for public investments to come with transparent commitments to protect jobs and the public interest, support communities, and a clear plan to diversify Algoma’s product capability mix for the long-term. “This support matters to our members and their families and protects jobs in the short-term in Sault Ste. Marie,” said Marty Warren, USW National Director. “But workers and the public deserve transparency about the terms of this deal. These are public dollars, and the terms and conditions must be made public, not left behind closed doors.” The USW laments that the package does not include specified investment commitments for product diversification – such as in structural steel and rail capacity – that will be essential to meet Canadian steel demand as governments commit to using Canadian steel in infrastructure, housing, and defence projects. In order to safeguard the future of steelmaking capacity in Sault Ste. Marie along with job security, investments in expanding the product capability of Algoma are of the utmost importance. The federal government has already made funds available to Canadian steel producers through the Strategic Response Fund. The next step is using those funds to expand Algoma’s product mix to ensure the long term viability of steel production and steelworker jobs in Sault Ste. Marie. “This announcement is a step forward, but workers continue to face too much uncertainty,” said Kevon Stewart, USW Director for Ontario and Atlantic Canada. “Steelworkers in Sault Ste. Marie are already bracing for layoffs in the coming months due to Algoma’s transition to an EAF. Training, reskilling, and diversification funding are essential to keep good jobs in this community. Our union will not accept public money being handed over in the background, without employment guarantees for workers and the community and ensuring respect of the collective agreement. We need productive investments to ensure the maintenance of good steelworker jobs in Sault Ste Marie.” The union reaffirmed that Canada’s steelworkers have led the call for decisive government action since the U.S. imposed punishing 50% tariffs on Canadian steel, effectively shutting Canada out of its largest export market. The USW continues to press for a comprehensive industrial strategy – including Buy Canadian procurement, diversification investments, strict import controls and worker transition supports – to ensure Canada can supply its own needs and never again be left vulnerable to foreign governments’ trade wars. About the United Steelworkers union The USW represents 225,000 members in nearly every economic sector across Canada and is the largest private-sector union in North America, with 850,000 members in Canada, the United States and the Caribbean. Each year, thousands of workers choose to join the USW because of the union’s strong track record in creating healthier, safer and more respectful workplaces and negotiating better working conditions and fairer compensation – including good wages, benefits and pensions. For more information, please contact:François Soucy, USW Communications, 873 355-2841, fsoucy@usw.ca

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