Tax Shock: Conservatives Demand Relief as Layoffs Devastate Ontario Families

Paul Riverbank, 2/10/2026Ontario auto layoffs spark push for severance tax relief, highlighting urgent family and industry struggles.

You don’t have to look far to find the faces behind the numbers: folks lining up at food banks who, a year ago, logged overtime on the assembly floor; families cancelling summer plans, weighing whether to dip into whatever’s left of their savings. Many learned their jobs had vanished, only to realize their “lifeline”—the severance cheque—was swiftly cropped by the same government they’d been paying taxes to for years. The tax withholding on these payouts isn’t a new policy, but when you’re blindsided by a layoff, “wait until April” isn’t much consolation.

Conservative Leader Pierre Poilievre—never one to miss an opening—teamed up with labour critic Kyle Seeback and Ingersoll’s own MP, Arpan Khanna, to make a push. Their message lands with unvarnished frustration: lighten the tax bite on those severance packages, at least this once. In the letter they sent to Finance Minister François-Philippe Champagne, the appeals are as practical as they are political: this is not the moment to watch Ottawa scoop up “tens of thousands of dollars” per family, they argue, while people are teetering. After all, the mortgage bill arrives monthly, not at tax time.

Call it what you like—politicking or policy plea—the backdrop is one of mounting strain in the auto sector. GM said the move had little to do with the factory’s workforce and everything to do with sluggish EV demand and stiff American regulations. Hard to argue, given the headlines: down the highway in Oshawa, another 500 jobs are being erased as the plant drops a third shift. Each cut slices through a web of suppliers, local diners, dealerships—places the politicians rarely visit once the cameras leave.

Union leaders, especially Unifor, have been quick to trace the blame across the border. The 25% tariffs the Trump administration slapped on non-U.S. vehicle components made Canadian plants collateral damage in a larger trade war. The fallout wasn’t just felt in boardrooms; it landed on shop floors, swelled union halls with anxious meetings, and nudged many skilled tradespeople out of auto altogether.

As if to steady the nerves, Prime Minister Mark Carney staged the rollout of a new automotive strategy. On paper, it’s a roadmap: ramp up investment, chart a “sovereign” emissions path, reinstate federal EV rebates. Yet there’s grumbling about the fine print. Some critics see the plan as tone-deaf—offering little solace to the newly unemployed, while the rebate’s design may give American auto giants a windfall, to the detriment of battered Canadian producers.

And then there’s the elephant in the negotiation room: next year’s renewal of the Canada-U.S.-Mexico Agreement. Canadian negotiators are already bracing, especially as election season looms stateside. Poilievre’s camp isn’t letting anyone forget it. In their letter, they press Ottawa on the absence of a watertight plan to shelter Canadian jobs—an echo that grows louder with every plant layoff.

Carney, careful as ever with his words, says he’s “focused on removing all tariffs,” but notes—not for the first time—that U.S. resolve is a moving target, especially if Donald Trump reclaims the White House. His subtext is clear: Canada would be wise to prepare for every scenario.

On the ground in Ingersoll, most people aren’t parsing the subtleties of cross-border trade. They want to know who’s got their back as balances run dry. The conversation around severance withholding isn’t about loopholes or long-term tax policy—it’s about getting from this Friday to the next.

The government must walk a tightrope: address today’s jobless crisis without losing sight of an auto industry that morphs with every global tremor. The right move isn’t always obvious from Ottawa’s high windows. For the families left wondering how to bridge the gap, time spent in policy debate is time wasted. In moments like these, leadership is measured not just by announcements, but by action that lands, and lands quickly, where it’s needed most.

When word broke that the GM CAMI Assembly plant in Ingersoll was throwing in the towel on its BrightDrop electric vans, it didn’t just ripple through the company newsletter. The news thundered through small towns across southern Ontario: suddenly, more than a thousand people were staring down the barrel of unemployment, right as mortgage statements hit the mailbox and grocery carts emptied faster than usual. For the workers, the end was abrupt. The impact? Immediate and personal.You don’t have to look far to find the faces behind the numbers: folks lining up at food banks who, a year ago, logged overtime on the assembly floor; families cancelling summer plans, weighing whether to dip into whatever’s left of their savings. Many learned their jobs had vanished, only to realize their “lifeline”—the severance cheque—was swiftly cropped by the same government they’d been paying taxes to for years. The tax withholding on these payouts isn’t a new policy, but when you’re blindsided by a layoff, “wait until April” isn’t much consolation.Conservative Leader Pierre Poilievre—never one to miss an opening—teamed up with labour critic Kyle Seeback and Ingersoll’s own MP, Arpan Khanna, to make a push. Their message lands with unvarnished frustration: lighten the tax bite on those severance packages, at least this once. In the letter they sent to Finance Minister François-Philippe Champagne, the appeals are as practical as they are political: this is not the moment to watch Ottawa scoop up “tens of thousands of dollars” per family, they argue, while people are teetering. After all, the mortgage bill arrives monthly, not at tax time.Call it what you like—politicking or policy plea—the backdrop is one of mounting strain in the auto sector. GM said the move had little to do with the factory’s workforce and everything to do with sluggish EV demand and stiff American regulations. Hard to argue, given the headlines: down the highway in Oshawa, another 500 jobs are being erased as the plant drops a third shift. Each cut slices through a web of suppliers, local diners, dealerships—places the politicians rarely visit once the cameras leave.Union leaders, especially Unifor, have been quick to trace the blame across the border. The 25% tariffs the Trump administration slapped on non-U.S. vehicle components made Canadian plants collateral damage in a larger trade war. The fallout wasn’t just felt in boardrooms; it landed on shop floors, swelled union halls with anxious meetings, and nudged many skilled tradespeople out of auto altogether.As if to steady the nerves, Prime Minister Mark Carney staged the rollout of a new automotive strategy. On paper, it’s a roadmap: ramp up investment, chart a “sovereign” emissions path, reinstate federal EV rebates. Yet there’s grumbling about the fine print. Some critics see the plan as tone-deaf—offering little solace to the newly unemployed, while the rebate’s design may give American auto giants a windfall, to the detriment of battered Canadian producers.And then there’s the elephant in the negotiation room: next year’s renewal of the Canada-U.S.-Mexico Agreement. Canadian negotiators are already bracing, especially as election season looms stateside. Poilievre’s camp isn’t letting anyone forget it. In their letter, they press Ottawa on the absence of a watertight plan to shelter Canadian jobs—an echo that grows louder with every plant layoff.Carney, careful as ever with his words, says he’s “focused on removing all tariffs,” but notes—not for the first time—that U.S. resolve is a moving target, especially if Donald Trump reclaims the White House. His subtext is clear: Canada would be wise to prepare for every scenario.On the ground in Ingersoll, most people aren’t parsing the subtleties of cross-border trade. They want to know who’s got their back as balances run dry. The conversation around severance withholding isn’t about loopholes or long-term tax policy—it’s about getting from this Friday to the next.The government must walk a tightrope: address today’s jobless crisis without losing sight of an auto industry that morphs with every global tremor. The right move isn’t always obvious from Ottawa’s high windows. For the families left wondering how to bridge the gap, time spent in policy debate is time wasted. In moments like these, leadership is measured not just by announcements, but by action that lands, and lands quickly, where it’s needed most.