Conservatives urge Ottawa to ease tax burden on GM severance payments

The Conservatives criticized the federal government’s timing, noting that workers need access to severance funds immediately.

Conservative MPs are calling on the federal government to ease tax burdens on severance payments for laid-off General Motors workers in Ingersoll.

In a letter to Finance Minister François-Philippe Champagne, Conservative Leader Pierre Poilievre, labour critic Kyle Seeback, and local MP Arpan Khanna argued that withholding taxes on lump-sum severance could deprive workers of “tens of thousands of dollars,” adding “insult to injury.”

The appeal comes after GM announced the end of BrightDrop electric vehicle production at the CAMI Assembly plant, leading to over a thousand layoffs, as well as reduced shifts at the Oshawa Assembly plant impacting supply chain workers.

The Conservatives criticized the federal government’s timing, noting that workers need access to severance funds immediately to pay mortgages and bills, rather than waiting until after tax season.

The MPs also dismissed Prime Minister Mark Carney’s new automotive strategy as insufficient for protecting Canadian auto-sector workers, arguing it subsidizes American-made EVs rather than providing meaningful relief for Ontario employees affected by the GM CAMI shutdown.

Canada is also preparing for upcoming talks to renew the Canada–United States–Mexico Agreement, with Carney acknowledging that the U.S. may not be willing to remove tariffs, meaning Canada must “prepare for all possibilities.”

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