A 'horrible day' for workers: ArcelorMittal to close Hamilton wire-drawing mill, affecting 153 jobs
ArcelorMittal Long Products Canada says activities will operate solely out of Montreal site
In a decision that will affect 153 workers, steelmaker ArcelorMittal Long Products Canada says it is "restructuring" its wire drawing operations in Hamilton and Montreal — closing its Hamilton mill and concentrating work in Montreal.
As a result of the change, the Hamilton mill will be permanently shut down in the coming weeks, said a news release issued Wednesday morning. Workers at the mill make wire for products including springs, hangars and fasteners.
It's unclear if employees will be laid off or offered to transfer to Montreal. Company spokesperson Jean-Philippe Grou told CBC Hamilton a joint employer-union committee will "clarify the next steps," including how many people could be relocated and the exact date of the closure.
United Steelworkers (USW) Local 5328 president Mike Hnatjuk represents about 100 members who work at the Hamilton operation. In an interview, he told CBC Hamilton it's been a "horrible day" for them.
Union and employer to discuss terms of closure
In the coming days, Hnatjuk said, union members will develop a closure agreement with their employer. He said he hopes the union can secure a right for Hamilton workers to move elsewhere.
Workers are only just learning the news as they come into work, Hnatjuk said Wednesday morning. The company has counsellors present for people to speak with, and employees are being sent home for the rest of the week, he added. They're expected to return Monday to finish existing work.
The company is aiming "to strengthen its competitiveness and ensure better long-term profitability for its wire drawing activities," CEO Stephane Brochu said in the release.
"It is never an easy decision to close a site," Brochu said. "First and foremost, all our efforts are focused on supporting the employees affected by this closure."
The health of the steel industry in Hamilton has been the source of much concern due to U.S. tariffs, which recently increased to 50 per cent.
Grou would not confirm whether the company's decision about the mill is tariff-related. "Despite our best efforts, the ongoing economic challenges, increased steel imports in Canada, and market conditions made it clear that we needed to reduce our operating footprint," he said in an email to CBC Hamilton.
The company told employees the facility has been losing US$2.6 million per year for the past five years and it is trying to recoup money, Hnatjuk said. He also blames the practice of steel dumping. Industry leaders have long alleged steelmakers in other countries sell into the Canadian market at very low prices, harming local manufacturers.
Hnatjuk, who has been at the plant for 31 years and weathered hard economic times before, said he was expecting difficulty ahead but not a closure.
He suspects the tariffs "put the nail in the coffin," since the plant relies on the automotive industry as it makes wires for automotive springs.
Since the U.S. tariffs on steel started in March, Hnatjuk said, ArcelorMittal's long products company has already laid off about 25 per cent of its workers on the floor.
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"I am deeply concerned for the wellbeing of the workers and their families who are now facing the devastating news of the ArcelorMittal Long Products Mill closure," Hamilton Mayor Andrea Horwath said in a Wednesday afternoon statement.
The closure "underscores the urgent need for action from the federal government," Horwath said, adding she implores the government to "prioritize Hamilton" before the plant goes dark and it's "too late."
On Friday, Industry Minister Mélanie Joly spoke to steelworkers at ArcelorMittal Dofasco in Hamilton, which is separate from the mill. She said the federal government will work to prevent layoffs and stop steel dumping.
"We will have more to say very soon on those two issues," Joly told reporters. "These can't be empty promises. We're in action mode."
Mill has about 70 years of history in Hamilton
According to its website, the long products company makes billets, slabs, bars and wire rods, which are used in sectors including automobiles and construction. The company says it employs about 2,000 people across Quebec where it is also the largest recycler of scrap metal.
USW Local 5328 is 69-years-old, Hnatjuk said, and the plant is a year or two older than that. About 40 years ago, it employed close to 500 workers, he said, and made other products such as nails and parts for fences.
"There's a lot of history, he said. "A lot of our families used to grow up there."
"It's a shame and it's sad and I just wish everyone the best that's being affected by this."
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With files from Samantha Beattie