A half-billion dollar lifeline thrown to Algoma Steel was built on a foundation of secrecy, a deliberate withholding of crucial information from the public. Taxpayers, effectively funding this massive loan guarantee, were treated with blatant disregard, kept in the dark about a pre-determined outcome.
Prime Minister Mark Carney and Ontario Premier Doug Ford approved $400 million and $100 million respectively, fully aware that Algoma Steel intended to proceed with substantial layoffs – a fact conspicuously absent from the initial announcements. This wasn’t a potential consequence; it was a known certainty at the time the funds were allocated.
The revelation came last week, delivered alongside the jarring news of 1,000 workers losing their jobs at the Sault Ste. Marie plant. Algoma Steel finally admitted both levels of government were briefed on the impending cuts *before* signing off on the financial support.
The layoffs stem from a fundamental shift in technology – a move from traditional blast furnaces to electric arc furnaces designed to produce “green steel.” While aiming for reduced emissions, this transition inherently demands a significantly smaller workforce.
Adding fuel to the fire, the company cited the 50% tariff imposed on Canadian steel by the United States as a catalyst to accelerate the layoffs, pushing them forward to March instead of the originally planned 2027. This external pressure became a convenient justification for a pre-existing plan.
Both Carney and Ford now claim their support mitigated even *greater* job losses. However, this defense misses the core issue: the deliberate lack of transparency. Why was the public not informed of these impending cuts when the loans were initially presented?
The motivation is clear. Avoiding scrutiny and criticism was prioritized over honest communication with the taxpayers footing the bill. The governments sought to control the narrative, shielding themselves from difficult questions about the true impact of their investment.
This incident casts a long shadow over the billions of dollars being disbursed to companies grappling with tariff impacts. What other critical details are being concealed? The Algoma Steel case, and others like it, demonstrate that financial support does not equate to job security.
Despite repeated assurances that these programs are designed to *preserve* jobs, the reality is far more complex. The public deserves a full accounting, a complete and honest picture of where their money is going and what the true consequences will be.
