Conservatives Urge Tax Relief on GM Worker Severance Amid Layoffs

Opposition Conservative Party leaders are calling on the federal Liberal government to provide tax relief on severance packages for General Motors workers laid off from the CAMI Assembly plant in Ingersoll, Ontario.

Conservative Leader Pierre Poilievre, joined by MPs including labour critic Kyle Seeback and Arpan Khanna, wrote to Finance Minister François-Philippe Champagne arguing that taxes withheld on lump-sum severance payments could cost affected workers tens of thousands of dollars at a time when they need that income most.

In their letter, the Conservatives said workers should not have to wait until after tax season to recover withheld amounts, noting that many former employees are now managing mortgage payments, groceries and other everyday expenses without steady pay.

GM’s BrightDrop electric vehicle production at the CAMI plant ended last year due to weak demand, leading to layoffs of more than a thousand employees. The Conservatives contend that reducing immediate tax burdens on severance pay would support those workers as they transition and face economic uncertainty.

The letter comes amid broader challenges facing Canada’s automotive sector, including tariff pressures from the United States and debates over federal strategy. Conservatives criticized the government’s recent auto industry plan, saying it does little to directly protect jobs or support laid-off workers.

Finance Minister Champagne has not yet publicly responded to the call for tax relief. The discussion reflects growing concern among some political leaders about the effects of layoffs and how best to help displaced workers during economic transitions.