Calls for Laid-Off GM Canada Workers to Pay Lower Taxes on Severance in 2026
Just weeks after General Motors (GM) cut the “third shift” at its Oshawa assembly plant, the Conservative Party of Canada is calling for an exemption to the withholding taxes that affect severance pay.
“[GM staff] 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,” Conservative Leader Pierre Poilievre said in a letter addressed to Finance Minister François-Philippe Champagne.
The letter, released as tax-filing season looms, argues that taxes on a large chunk of the lump-sum severance payments could deprive laid-off employees of “tens of thousands of dollars,” adding “insult to injury.”
Our GM Layoffs & Severance Guide breaks down everything that non-unionized employees in Canada need to know.
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About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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