‘Political posturing at the expense of our members’: Unifor says it has not asked for tax relief for laid-off CAMI workers

Federal Conservatives demand the Liberal government give tax relief to CAMI workers receiving severance packages. CTV’s Bryan Bicknell reports.

The union representing laid-off auto workers at GM’s CAMI assembly plant in Ingersoll says it has not requested tax relief for its members. The comments to CTV News come as the federal Conservatives call on the Liberal government to reduce taxes on workers’ severance packages.

“I’m sure everyone has seen the letter that our leader Pierre Poilievre sent to the finance minister with respect to the auto industry in Canada on February the ninth,” said Conservative Labour Critic Kyle Seeback, addressing a news conference in Ottawa.

He was referring to an open letter from Poilievre addressed to Finance Minister François-Philippe Champagne, calling for the minister to “use your existing authority to reduce the amount of tax withheld on these payments for workers affected by the GM CAMI layoffs.”

Seeback was joined by Oxford Conservative MP Arpan Khanna whose riding includes CAMI.

“Our workers need relief right now,” said Khanna. “They can’t wait a year, a year and a half to get some of the money back. They need some help right now. So, we’re calling on the minister of finance to pass some measures with the stroke of a pen. Help those workers that need help.”

GM announced last year it would end its Brightdrop electric vehicle production at CAMI.

Approximately 1,200 employees have been laid off. The Conservatives claim the government is withholding 50 per cent of their lump sum payouts.

“These workers have called me and told me that it feels like they’re being kicked down while they’re already on the floor,” Khanna said.

According to the Financial Consumer Agency of Canada website, people “must pay income tax on severance pay,” and explain that if people receive their severance pay as a lump sum payment, the employer will deduct the income tax.

Further, “the amount of tax depends on the province or territory you live in and the total amount of severance pay.”

In the parliamentary Question Period Monday, London North MP Peter Fragiskatos responded to the call for tax relief.

“He [Khanna] also knows, Mr. Speaker, that for the severance pay that he’s referring to, the CRA is treating it as it always is, a matter of Canadian law. The time is to put away politics. Let’s work together on behalf of the people of Ingersoll and the auto sector,” said Fragiskatos.

Unifor Local 88, which represents laid-off CAMI workers, say individual members may have approached their local MP about the issue, but the union has not formally made any such request for tax relief.

Local 88 President Stephen Pye tells CTV News the Conservative move is “political posturing at the expense of our members.”

He goes on to say that “Unifor is not in the practice of divulging monetary compensation of members.”