Canada Metal Processing Group cuts workforce amid US trade war

What’s happening at Canada Metal Processing Group?

Canada Metal Processing Group (MPG), a major Canadian steel manufacturer and subsidiary of The Heico Companies, has announced layoffs impacting 140 employees across its three manufacturing facilities. The layoffs stem from the recent imposition of U.S. tariffs on steel and aluminum products and mark one of the earliest signs of how the ongoing trade tensions are affecting Canadian industry.

CTV News reports that the largest impact is at Ivaco Rolling Mills in L’Orignal, Ontario, located east of Ottawa. According to the United Steelworkers union, up to 150 workers at this facility are affected:

• 30 workers have received permanent layoff notices.
• 120 additional employees are facing temporary furloughs lasting one week.

Ivaco Rolling Mills, which produces hot rolled wires and steel billets used in construction, employs a total of 472 workers.

Official statements and context

MPG Canada President Matt Walker addressed the layoffs in an official statement, emphasizing that, “This was an extremely difficult decision for our company, and not one that was made lightly, but necessary for the business in the current environment.”

Walker cited several factors contributing to the layoffs, including:

• A “soft market” throughout 2024 that has led to weaker North American demand.
• The “increased challenge of unfair trade imports into Canada.”
• The 25% U.S. tariffs on Canadian steel and aluminum imports, which took effect Wednesday as part of President Donald Trump’s broader trade measures.
• The company also announced it will be implementing further cost-saving initiatives and pausing or cancelling several projects in response to these economic pressures.

Walker called for immediate action from the Canadian government:

• “While it is impossible at this juncture to predict how long these actions by the United States will last, the Canadian government must be prepared to react quickly to safeguard the long-term viability of Canadian steel product manufacturers, and the collective job security of our employees.”

Next steps for non-unionized MPG employees

If you’re fired or let go from MPG, understanding your legal rights is crucial.

Non-unionized employees in Canada are entitled to severance pay. The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.

Lost your job? Contact us

If you’re fired or let go from MPG for any reason, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.