Plan in works to save some jobs slated to be cut at Algoma Steel: union

A worker is shown at Algoma Steel in Sault Ste. Marie, Ontario on Friday, April 25, 2025. THE CANADIAN PRESS/Sean Kilpatrick

Plans are in the works to save hundreds of the roughly 1,000 jobs slated to be lost at Algoma Steel Inc. in Sault Ste. Marie, Ont.

Bill Slater, president of United Steelworkers local 2724 that represents some of the affected employees, says as many as 500 people could be back at work by the end of next year.

He says the plans involve expanded capacity at Algoma through a government loan, though details are still being hammered out.

The plan was first reported by local media outlets Friday after Industry Minister Mélanie Joly travelled to Sault Ste. Marie and talked to reporters after meeting with representatives from Algoma and the USW. Neither the federal government nor Algoma have responded to multiple requests to confirm the news.

Algoma sent out layoff notices to more than 1,000 workers a week ago after it accelerated plans to switch over to a new production system that is more efficient and requires fewer workers.

Slater says there’s nothing set in stone yet on the plans to save about half the jobs, so workers are still holding their breath to see what will happen.

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This report by The Canadian Press was first published Dec. 8, 2025.