‘Stop taking their money at the worst possible moment’
The federal Conservatives are urging the Liberal government to reduce income tax withholding on severance packages for laid‑off General Motors workers in Ontario, as GM proceeds with major restructuring at plants in Ingersoll and Oshawa.
In a letter to Finance Minister François‑Philippe Champagne, Conservative Leader Pierre Poilievre, labour critic Kyle Seeback and Oxford MP Arpan Khanna call for relief on lump‑sum severance paid to workers affected by layoffs at the CAMI Assembly plant in Ingersoll, according to a draft obtained by The Canadian Press (CP).
In the draft, the Conservatives argue that tax on “a big chunk” of the severance could deprive laid‑off employees of “tens of thousands of dollars,” adding “insult to injury.” They say it is not reasonable to expect workers to wait until after tax season to recover any overpayment when they have lost their “regular paycheques” but still face mortgages and grocery bills.
“These men and women worked hard, played by the rules and built things this country depends on. The least your government can do is stop taking their money at the worst possible moment,” the letter states.
The MPs ask Champagne to use his “existing authority to reduce the amount of tax withheld on these payments for workers affected by the GM CAMI layoffs.”
CAMI and Oshawa restructuring
GM announced last year it would end BrightDrop electric‑vehicle production at CAMI in Ingersoll, citing weaker‑than‑expected market demand and a challenging regulatory environment in the United States. More than 1,000 employees have been laid off at the plant, The Canadian Press reported.
Separately, Oshawa Assembly is moving from three shifts to two, triggering layoffs that begin Feb. 2, 2026, in line with a plan first disclosed in May 2025. Approximately 500 employees will be placed on layoff, and the company says the change is expected to affect up to 1,000 workers across the supply chain.
GM said it has worked with Unifor, which represents affected hourly workers, “to support employees through this transition with comprehensive separation packages, retirement support and other benefits,” and thanked impacted staff “for their contributions to the company.”
In April 2025, Stellantis also announced it is laying off roughly 6,000 workers in Canada following the U.S. government’s decision to impose tariffs on Canadian-made vehicles.
Support package for Oshawa workers
Under the GM/Unifor collective agreement, all hourly seniority employees impacted by the Oshawa production adjustment are eligible for GM‑paid Supplemental Unemployment Benefits. Combined with Employment Insurance (EI), those payments equal 70% of regular weekly earnings, and employees will continue to have access to health‑care coverage.
The duration of benefits ranges from nine months to about two years, depending on tenure.
Impacted employees will also receive outplacement support, including résumé writing and interview preparation, assistance from Service Canada on EI claims, and access to counselling and mental‑health services.
Investment alongside job losses
Despite job cuts, GM is stressing its ongoing investment in Canada. The company says preparations continue at Oshawa Assembly to build the next generation of gas‑powered full‑size pickups, backed by a $280‑million investment “that reinforces Oshawa’s future in GM’s key full‑size truck program.”
GM says it has invested more than $2.6 billion in Canadian manufacturing over the past five years. Oshawa Assembly is the company’s only North American plant that builds both light‑duty and heavy‑duty Chevrolet Silverado pickups on the same line, and part of the facility continues to support aftermarket parts through stamping and related sub‑assembly work.
St. Catharines Propulsion is slated to produce GM’s next‑generation V8 engines, which power full‑size trucks and SUVs, while CAMI Assembly “continues to be assessed for future opportunities.”
Previously, Ontario Premier Doug Ford set out clear expectations for foreign automakers that want access to the Canadian market.
“If companies are going to come in, no matter if it’s from China or over in Europe or over in Asia there, we have one request; build the vehicles here, protect the auto sector,” Ford said, according to the CTV News report. “Make sure you get your parts here. Make sure we get the technology here. Make sure you follow the guidelines.”
In March 2025, the chief executive officer of a global financial advisory firm warned about potential layoffs stemming from US President Donald Trump's 25% tariff on imported vehicles. Nigel Green, CEO of deVere Group, said Trump's tariffs will not lead to more jobs or better wages, Reuters reported.
"It leads to sluggish sales, costlier credit, and potential layoffs — exactly what a fragile economy doesn't need," he said, as quoted by the news outlet.
