The head of one of the unions at Algoma Steel described the mood there as “terrible.”
“Everybody's afraid to lose their jobs,” Bill Slater said this afternoon, one day before Donald Trump has promised he will sign an executive order increasing tariffs on Canadian steel and aluminum from 25 to 50 per cent.
Slater is the president of United Steelworkers Local 2724, the union for roughly 500 workers at Algoma Steel.
He said around 35 workers have been impacted at Algoma Steel since Trump took office earlier this year.
“We had a bunch of temporary layoffs and now we have 19 members that have notifications of long-term layoffs,” he said, adding that some workers have retired instead of learning a new job at the plant.
“We also had some retirees that were working on contracts that have all ended.”
Slater said some employees received eight-weeks notice, so they’re not laid off yet.
“We're worried about more if it happens tomorrow,” he said.
Slater said there are a few things the federal government should do to help Canada’s steel industry.
With the 25-per-cent tariffs that Trump ordered in March, Algoma Steel has been breaking even or sometimes making a small profit selling into the U.S., Slater said, “but it caused flooding of steel into the Canadian market and depressed the Canadian prices.
“Everything we sell in Canada is at a loss," he said.
“I think the government needs to step in and stop other countries from being able to dump steel at a reduced price.
“You know we've had a system in the past where we would take these cases to Ottawa and basically go through judicial proceedings to see if it was legitimate dumping or not.
"But that process takes too long. The government needs to step up and make faster decisions on out-of-country steel coming into our country,” he said.
Slater also feels the government needs to put something in place to help laid-off workers.
He is not the only one who feels that way.
Mayor Matthew Shoemaker is calling for emergency funding for Algoma Steel if Trump follows through on his promise tomorrow.
In an interview with SooToday, Shoemaker said the time to act is now, before the tariffs cause more job losses – perhaps even outside of the steel industry.
“The longer this goes on, the more impacts we will see with layoffs - at Algoma Steel but also at their suppliers, at local restaurants, and beyond,” he said.
Shoemaker said he’s met with MP Terry Sheehan and MPP Chris Scott.
He’s hopeful both the federal and provincial governments can provide support that will help Algoma Steel get through this difficult time.
Shoemaker didn’t want to speculate on what would happen if Algoma Steel doesn’t receive help soon.
Similar to the mayor, Algoma Steel appears to be sounding an alarm bell over the potential tariffs.
In a statement, a company representative said they are “deeply concerned” with the potential increase in tariffs.
“The Algoma Team remains in close consultation with our customers and the government regarding the challenges this presents to our business,” said Laura Devoni, Algoma Steel’s director - human resources & corporate affairs.
“Algoma is advocating for swift government action to support Algoma and the Canadian Steel Industry during this volatile time.”
This week, Algoma Steel’s CEO Michael Garcia will be in Ottawa to discuss the potential tariff.
In an interview with SooToday, Canada’s Industry Minister, Mélanie Joly, said she plans to meet with Garcia to determine the best way forward.
Joly said people in the Sault should try not to worry too much, because the government is keeping an eye on it and is ready to act.
“I want people to know that we're on it, that I'm on it . . . that this is a priority for the government, for the prime minister, and we will be in solution mode when Algoma comes to Ottawa to discuss it.
“And at the same time, I'm looking forward to going to the Sault to meet the workers and hear their own thoughts.”
Joly didn't want to speculate on how much a 50-per-cent tariff could cost Canada's steel industry.
"I understand this question is important, but I won't get into hypothetical questions as there's no executive order signed," she said.
Joly said she's been working closely with Sheehan.
“I know that Terry Sheehan, our great and hard working MP in the Sault, is also making sure he's in solution mode and advising me on what to do for Algoma.
“I've been working hand-in-glove with Terry on this issue.”
Joly said Canada will definitely fight back against the tariffs.
“We need to make sure that we protect our workers and we need to build this country.”