Algoma Steel Layoffs Could Impact Future Christmas Cheer Demand

Algoma Steel’s announcement on March 23, 2024, regarding a mass layoff of approximately 1,000 employees is expected to influence the demand for Christmas Cheer assistance next year, according to charity officials. Diane Marshall, the long-time convener of Christmas Cheer, stated that while this year’s applications may not see a significant increase, the long-term effects of such job losses could strain resources for the charity in future drives.

Immediate Impact on Christmas Cheer Applications

Marshall expressed concern for the individuals affected by the layoffs, indicating that their need for support may increase as they seek alternative employment. “We don’t think so with that short application timeframe that we have left,” she told The Sault Star in an interview. The deadline for Christmas Cheer assistance applications is set for December 5, 2023. Marshall emphasized the potential long-term impact, “But it certainly, likely will impact us next year.”

The layoffs are a direct result of Algoma Steel’s transition to Electric Arc Furnace steelmaking, compounded by significant tariffs imposed by the United States. The company reported nearly $500 million in losses in the last quarter, primarily due to the 50 percent tariffs on steel, which have curtailed its market access. As the largest employer in Sault Ste. Marie, Algoma Steel employs about 2,700 people, making the layoffs a significant event for the local economy.

Christmas Cheer Preparations Underway

Despite the challenges posed by economic uncertainty, preparations for Christmas Cheer are advancing at the charity’s depot, located in the former Walmart at Station Mall. Marshall anticipates around 2,000 applications this year, slightly more than the 1,800 requests fulfilled the previous year. This initiative aims to support families and individuals across the Algoma District, from Bruce Mines to Batchawana.

The charity’s operations have adapted due to ongoing pandemic protocols. Traditional practices such as packing days have been replaced with more streamlined processes to ensure safety. Instead of pre-packaged meals, recipients now receive food vouchers, and while new toys are prioritized for gifts, used items like books and puzzles are encouraged. To bolster this year’s toy inventory, officials have purchased popular items, including Lego sets.

As December approaches, Marshall remains optimistic, noting that community engagement typically increases as the holiday season nears. “We’ve had some slower days, but we know once we get into December, people think more about Christmas Cheer,” she remarked, anticipating a rise in donations and participation as the festive spirit takes hold.

The need for assistance in the region is underscored by a growing concern for poverty and food insecurity. Local organizations such as the Soup Kitchen Community Centre, St. Vincent Place, and The Salvation Army have reported an increase in demand for their services. The Algoma Food Security Network recently called on the Ontario government to take decisive action to combat food insecurity, highlighting that one in four households in the Algoma District struggles to meet basic needs.

Lauren Moran, community enterprise manager with Harvest Algoma, emphasized the urgency of the situation, stating, “Families across Algoma are making impossible choices, whether to pay rent or buy food.” She called for systemic change to address the long-term challenges posed by poverty and food insecurity.

The entire Christmas Cheer initiative relies heavily on the support of volunteers and generous donations from the community. The Sault Star Santa Fund, which supports Christmas Cheer, has set a fundraising goal of $110,000 this year, reflecting the increased need for assistance. The campaign aims to build on last year’s success, which saw over $125,000 raised for the charity. The Santa Fund has generated more than $3 million since its inception in 1981.

Brunella Gagliardi, co-ordinator of the Sault Star Santa Fund, expressed hope that community members will continue to contribute despite the economic challenges posed by the steel industry. “I’m hoping people have it in their hearts to give because Christmas is a time of giving,” she said.

The Santa Fund kiosk is open for donations Monday to Friday from 10:00 to 16:00, and weekends from noon to 16:00, closing on December 20. Donations can also be mailed or made through electronic transfers, ensuring that support can reach those in need effectively.

The ongoing situation with Algoma Steel serves as a reminder of the complex relationship between local employment and community welfare. With the holiday season fast approaching, the commitment to supporting those in need remains vital for the residents of Sault Ste. Marie and the surrounding areas.