Immigrant Workers at Algoma Steel Face Uncertain Future Amid Layoffs

As approximately 1,000 workers at Algoma Steel prepare for layoffs in Sault Ste. Marie, Ontario, many employees are grappling with the implications for their livelihoods and families. Among them is Mayurkumar Lad, a 38-year-old immigrant from India, who is particularly concerned about his family’s future in Canada.

Lad, who has been employed as a stationary engineer at Algoma Steel since 2024, moved to Canada with his wife and young daughter in 2022. He applied for permanent residency through the Ontario Immigrant Nominee Program (OINP) nearly 18 months ago. Designed to expedite the residency process for skilled workers, the OINP has encountered significant backlogs and delays, leaving Lad in limbo regarding his application status.

Given the impending layoffs, Lad fears that losing his job could jeopardize his permanent residency application. He must remain employed with Algoma Steel to keep his application active, and he does not expect to receive a decision until early 2027, well after the layoffs take effect.

Lad articulated his frustrations, stating, “I’m not losing my job because of misconduct, and the company is not shutting down the business overnight. We’re having operational limitations because of the tariffs.” He expressed concern that the consequences of these layoffs could affect not only his employment but also his entire immigration journey.

Union president Mike Da Prat confirmed that many employees share Lad’s anxieties. In light of the situation, Lad and his colleagues are urging both provincial and federal governments to grant them special exemptions to keep their applications active despite the layoffs.

The OINP acknowledged in an email that changes to employment status, such as layoffs, could impact an individual’s application. However, they noted that laid-off employees might still qualify for other immigration streams that do not require a job offer, such as Ontario’s Express Entry Human Capital Priorities stream. Despite this, Lad has not received any assurances about his situation, leaving him in a state of uncertainty.

“I want the government to look at this situation as a special case and make some exemptions,” he said. “We need answers, especially from the provincial government.”

The federal government has announced plans to save 500 of the 1,000 jobs set to be eliminated at Algoma Steel this year. François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, has emphasized the need for sustainable immigration levels, which has led to significant changes in the OINP.

Recent reforms include the cancellation of a skilled trades stream and a reduction in the number of entry categories from nine to four, along with a substantial cut in the number of provincial nominee applications accepted by Ottawa. These changes have raised concerns among skilled immigrants who worry about their future in Canada.

Lad remains hopeful but anxious. He noted, “If Algoma Steel and OINP come to some conclusive decision or some sort of exemption, I might continue my permanent residency journey. Otherwise, I am starting from scratch.”

Despite the challenges, he has developed a strong attachment to Sault Ste. Marie and its community. “My daughter’s in Grade 4, and she’s already adapted to the culture,” he shared. “I love the people here; they’re nice. We’re doing good supporting the Canadian economy. This is a big disruption.”

The situation for Algoma Steel workers highlights the precarious nature of employment and immigration policy for newcomers in Canada. As the days progress toward the layoffs, the urgency for clarity from government officials grows, with many individuals like Lad facing an uncertain path ahead. The Immigration, Refugees and Citizenship Canada (IRCC) continues to work with Ontario to address vulnerabilities in immigration streams across the provinces, yet immediate solutions for those impacted remain to be seen. Algoma Steel did not respond to a request for comment by the time of publication.