Goodyear South Africa's restructuring puts over 900 jobs at risk
Concern has been raised as Goodyear South Africa serves Section 189 notice to workers' unions National Union of Metalworkers of South Africa on restructuring at their manufacturing plant in Uitenhage Eastern Cape, putting over 900 jobs at risk.
Image: David Paul Morris
Goodyear South Africa's announcement on Friday to discontinue its manufacturing operations in Uitenhage, Eastern Cape, has sent shockwaves through the region, with over 900 jobs at risk due to a Section 189 notice served to the National Union of Metalworkers of South Africa (Numsa).
The decision, communicated by Goodyear's Managing Director Paul Gerrard, has raised alarm among unions, and economic analysts, who fear the closure could devastate the local economy amid high unemployment.
Mziyanda Twani, Numsa Eastern Cape Regional Secretary, said on Friday that the union is dismayed by Goodyear South Africa's announcement to discontinue its manufacturing operations in South Africa.
'The union has been served with a Section 189 notice from Paul Gerrard, the Managing Director of Goodyear Tyres in South Africa. The manufacturing plant is located in Uitenhage in the Eastern Cape, and the company envisages that at least 907 employees will be affected by the plant closure,' Twani said.
Twani added that as a region, Numsa was deeply worried about the impact on workers and their families in Uitenhage. 'It is becoming a ghost town given that ContiTech, which is part of Continental, closed down and it is also in the same tyre and rubber industry. At the same time, it may not be easy to replace these jobs. The Eastern Cape has a very high unemployment rate at 41.9% according to StatsSA.'
Twani said that while the outlook is bleak, as Numsa, "we stand ready to do everything we can to defend the jobs of our members and to negotiate fair severance packages. The dates of the first consultation will be communicated in due course".
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Chris Harmse, consulting economist of Sequoia Capital Management, said he is concerned about the move.
'One of the issues could well be that the African Growth and Opportunity Act (Agoa) could be ending due to the strain on South African and American relations. This could well have led to Goodyear South Africa wanting to scale down operations at its Uitenhage plant. The Agoa most major part is made up of 60% of the motor industry, with the next largest part being the agriculture industry. We hope that if Agoa does end, other major companies don't look to scale down business,' he said.
Goodyear South Africa is the heart of business in Uitenhage. 'Another issue is that the cost of doing business in South Africa is becoming too high, including issues with electricity, water, and failing infrastructure. We could see businesses looking to move their operations to other parts of Africa and to countries like Botswana and showing a preference to use Walvis Bay in Namibia for doing business South Africa already faces steep economic challenges. We are seeing that South Africa's GDP is being revised downwards, and this does raise concern about doing business in South Africa,' he said.
Nduduzo Chala, the managing executive at South African Tyre Manufacturers (SATMC), said that he is concerned about Section 189 at Goodyear South Africa. 'However, we must remember that Goodyear South Africa has entered a consultative process, and there will be an opportunity for the government, trade unions, and other stakeholders to voice their concerns. It is not set that they would retrench over 900 workers and end operations at the manufacturing plant in Eastern Cape. We just have to wait and see how the process unfolds.'
SATMC is concerned about the possibility of the plant closing. 'It's not a great situation for us as SATMC, workers, and the Eastern Cape community, but we have to see what happens during the consultative process,' Chala said.
Dr Eliphas Ndou, an economist and author at Unisa's Department of Economics, said the manufacturing sector's contribution to GDP has become smaller over time. 'The sector faces many challenges, including low-cost imports and a decline in local manufacturing competitiveness. The decline in the latest BER business confidence index shows that most businesses are not satisfied with prevailing business conditions. Hence, the development in the tyre manufacturing sector is a clear message to the government that wants to grow the economy, create, and keep employment to fast-track the implementation of structural reforms that will improve the local manufacturing sector's competitiveness, including tyre producers.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
26 minutes ago
- IOL News
Three renowned Cape Town eateries shine on the 2025 World's Best Restaurants list
La Colombe ranked 55th. Image: Facebook / La Colombe Cape Town continues to assert itself as a global culinary capital, with three of its most acclaimed restaurants earning coveted spots on the 2025 World's Best Restaurants list. These fine-dining establishments, known for their innovation, world-class talent, and spectacular settings, are showcasing the best of South African gastronomy on the world stage. La Colombe ranked 55th Making its sixth appearance on the list, La Colombe stands tall at number 55, reaffirming its status as a South African fine-dining icon. Nestled within the Silvermist organic wine estate at the top of Constantia Nek, the restaurant boasts panoramic views of the Constantia Valley, stretching all the way to the sea. La Colombe is the crown jewel of Scot Kirton's La Colombe Group, which includes some of South Africa's most celebrated restaurants. Under the direction of Chef James Gaag, the kitchen delivers a refined dining experience rooted in classic French technique, subtly infused with Asian influences. In 2024, La Colombe was ranked 49th globally and was named Best Restaurant in Africa, adding to its impressive string of accolades. FYN ranked 82nd Securing the 82nd spot, FYN returns to the list for the fifth time, further establishing its reputation as a cutting-edge culinary destination. Opened in 2018 by renowned chef Peter Tempelhoff, with Culinary Director Ashley Moss and Beverage Director Jennifer Hugé, FYN fuses Japanese precision with the rich flavours of South African ingredients. The restaurant offers a curated, seasonal tasting menu that highlights sustainability and storytelling, delivering an immersive dining journey. In 2023, FYN became the first stand-alone African restaurant to be inducted into the prestigious Relais and Châteaux association, a global hallmark of excellence in fine dining and luxury hospitality. Salsify at the Roundhouse ranked 88th A fresh addition to the global stage, Salsify at the Roundhouse debuts on the list at number 88. Located in the historic Roundhouse building above Camps Bay, the restaurant offers sweeping views of the Atlantic Ocean and Lion's Head. Led by Executive Chef Ryan Cole and Head Chef Nina du Toit, Salsify presents modern, seasonal tasting menus that draw inspiration from local, foraged ingredients, blending land and sea in every bite. Recognised locally, the restaurant earned three-star status at the Eat Out Woolworths Restaurant Awards in both 2022 and 2023. IOL Lifestyle
Daily Maverick
an hour ago
- Daily Maverick
President Lungu's death and the perils of a divided and weakened opposition in Zambia
Without the former president to unite a fragmented opposition in the lead-up to the 2026 elections, multiparty democracy will be the loser. The death of Zambia's former president on 5 June will be pivotal for the country's multiparty democracy. Edgar Lungu was a polarising figure for the country, but one that unified the opposition Patriotic Front (PF). He was in power from 2015 to 2021, when he lost the election to President Hakainde Hichilema's United Party for National Development (UPND). Lungu's passing leaves a vacuum that will reshape the power contest before the 2026 general elections, testing the weakening opposition's resilience and the UPND's adaptability. He became president through an unexpected internal party contest following former president Michael Sata's death in 2014. Perceived as a modest and unassuming figure compared with more outspoken party stalwarts, Lungu quickly emerged as a compromise candidate capable of uniting the PF. His supporters credit his presidency with accelerating Zambia's infrastructure development and improving its regional connectivity. His government implemented the compulsory National Health Insurance Scheme in 2018, marking a positive shift to the country's approach to healthcare financing. However, economic challenges deepened under Lungu. The global price of copper – which accounts for 70% of the country's exports – declined. Foreign borrowing increased, along with electricity rationing due to severe droughts that reduced water levels. Zambia became the first African nation to default on its debt during Covid-19 in 2020, pushing inflation to 15% and devaluing the kwacha by more than 50%. Politically, Lungu's tenure was marked by both reform and repression. While he oversaw a comprehensive constitutional reform in 2016, his administration was criticised for clamping down on independent media and for authoritarian tendencies that led to frequent arrests of then-opposition leader Hichilema. Following his majority defeat in 2021, Lungu retired from active politics. But he remained a powerful figure with a loyal support base, and in 2023 resumed his position as PF head. In November 2024 the rematch against Hichilema seemed a certainty when Lungu was selected as the newly formed Tonse Alliance's candidate for the 2026 presidential elections. But a few weeks later, Zambia's Constitutional Court disqualified Lungu from contesting the election. The landmark ruling found that his 2015-2016 term counted as a full term, meaning he could not run for what would be a third term. Some political commentators accuse the UPND of stoking the PF's internal wrangles and influencing Lungu's barring from the 2026 polls. Lungu accepted the court's ruling but remained an influential player and the opposition's most recognisable leader. The PF, diminished by factionalism since its 2021 electoral defeat, now faces an acute leadership crisis. Internal tussles between the Miles Sampa, Given Lubinda and Robert Chabinga camps are likely to intensify as each seeks to assert dominance without Lungu's moderating influence. The weakening of Zambia's opposition following Lungu's death illustrates the common challenge of 'charismatic authority' – when a movement established around a charismatic leader fragments and loses purpose when that figure is lost. The same happened to Zimbabwe's Movement for Democratic Change following Morgan Tsvangirai's death in 2018, and Hugo Chávez's Bolivarian movement in Venezuela. The PF used Lungu's appeal rather than strong party institutions or defined policy platforms to attract votes. This renders it prone to internal splits and limited efficacy in Lungu's absence. And while the opposition struggles to unite behind new leadership or a vision, the ruling UPND party has gained the advantage. Recognising his party's institutional deficit, Lungu drove attempts at coalition-building to face Hichilema in 2026. First was the United Kwacha Alliance, which lost momentum in 2024 after most major parties pulled out, including the PF. Then came the Tonse Alliance, which brought together more than 11 political parties. The alliance now faces a leadership contest for the presidential election ticket. Its prospects for the 2026 polls seem slim considering that only one alliance party – the PF – has ever won more than 50% of the vote required in a presidential election. The opposition's lack of cohesion may boost the ruling UPND despite public dissatisfaction over economic hardship and a perceived decline in democratic quality. Unless a new opposition figure can command similar respect as Lungu did across party lines, the opposition is likely to enter the 2026 polls divided and weakened. Hichilema must resist complacency and deal with the growing criticism, especially over governance, restrictions on civic space and perceived corruption, particularly in his flagship Constituency Development Funds projects. If the opposition finds its footing, the country could see a protest vote akin to his 2021 victory. The PF must identify a cohesive leader to avert further fragmentation. The very different political pedigrees of candidates such as former Lusaka mayor Miles Sampa and former justice minister Given Lubinda could undermine the party's electoral prospects and reduce the potential for renewal. The effectiveness of the Tonse Alliance was significantly tied to Lungu's influence. Without a new leader capable of uniting disparate factions and garnering widespread backing, Zambia's opposition may continue to falter. There is no time to waste, especially as history shows such alliances rarely succeed. In 2006, the main opposition candidate, Anderson Mazoka, died fewer than six months before the election. The United Democratic Alliance coalition of three parties – each with formidable personalities, including Hichilema – performed poorly, allowing Levy Mwanawasa to increase his margin of victory. The Tonse Alliance's multiple presidential aspirants might face the same hurdle. Lungu's death will unsettle the opposition and give Hichilema a clear edge in next year's elections. However, should the PF resolve its internal rifts or fresh voices emerge to rally support, the 2026 elections could still be closely contested. If not, the country might drift towards single-party dominance, threatening democratic checks and balances. The coming year is vital not only for the PF's survival but the future of multiparty democracy in Zambia. DM
Daily Maverick
18 hours ago
- Daily Maverick
Built for export, boxed in at home — SA vehicle sector calls for decisive action
While May brought a surge in local car sales according to the National Automobile Dealers Association's latest reporting, a sharp contraction in exports and rising global tariff tensions have pushed South Africa's automotive industry to a crossroads. South Africa's automotive industry may have enjoyed a high-revving May in local markets, but the road ahead is looking increasingly precarious. Local vehicle sales surged 22% year-on-year, according to the latest Automotive Business Council (Naamsa) data, yet exports dropped 14.6% overall, with passenger vehicle exports plummeting by nearly 35%. The African Growth and Opportunity Act (Agoa), a long-standing US trade programme that allows duty-free access for eligible African exports – including South African vehicles – faces renewed uncertainty under the Trump administration. With the White House pushing for reciprocal tariffs and stricter eligibility reviews, South Africa's preferential access could be one executive decision away from suspension. Speaking to Daily Maverick, Nada's vice-chairperson Thembinkosi Pantsi painted a picture of both resilience and distress. 'We're adapting, we're consolidating, and we're innovating to survive,' he said, referring to the shift toward multi-brand dealerships and used vehicle expansion. 'But make no mistake – we are nearing a cliff edge.'The automotive sector value chain in its entirety supports around 110,000 jobs, according to data from Naamsa, Stats SA and trade union data, with countless families relying on those employed in the sector to put food on the table. The industry – if you include both manufacturing and sales – contributed 5.3% to our GDP in 2023, and is the single largest manufacturing sector. Local sales surge, but export markets faltering While May saw strong domestic demand – driven partly by an influx of East Asian vehicle imports – it also underscored a growing contradiction: consumers want affordability, but the domestic industrial base relies on export volume to remain viable. 'We are seeing more Chinese brands enter the market with cost-effective models,' said Pantsi. 'This is good for consumer access, but doesn't help the thousands employed in export-geared manufacturing.' Volkswagen SA chairperson and managing director Martina Biene echoed the sentiment during her keynote address at Nada Connect in March of this year. 'Sometimes, as a local manufacturer, we don't feel as valued as we should be,' she said. 'There's a lot of investment here – jobs, skills, community development – but little relief from systemic pressures.' Biene disclosed that VW SA had spent more than R130-million on diesel generators to cope with load shedding. 'Every day I run them, it's R1.6-million in cost. That goes straight into the vehicle price,' she said. Add port congestion, road freight insecurity and policy drift, and 'you get a toxic mix,' she warned. What this means for you If global trade shocks persist and local manufacturing continues to contract, thousands of jobs across the auto value chain could be lost. Consumers may benefit from cheaper import options, but the broader consequences – shrinking local industry, fewer employment opportunities and weakened export competitiveness – pose a long-term economic risk. The off-and-on again Trumpian promise – tariffs Trump's revived steel and aluminium tariffs have reignited fears of a protectionist spiral. Pantsi warned that such moves could 'compound local challenges' and further disrupt trade patterns. 'Tariffs don't only raise costs. They erode investor and consumer confidence,' he said. 'We need urgent interventions – rebates, subsidies and export duty relief.' Biene concurred, calling for incentives over protectionism. 'We contribute massively to GDP and jobs. But sometimes it feels like the government is dazzled by short-term imports at the expense of long-term industrial strategy.' She said Agoa's uncertainty was more than symbolic. 'Agoa isn't a given,' Biene warned. 'If we lose that access, it's not just a dent in our balance sheets – it's a question of whether we keep local production viable.' Pricing inaction For every vehicle exported, dozens of suppliers – from tyre producers to seat manufacturers – depend on consistent output. A dip in export volumes, Pantsi noted, ripples across the entire automotive value chain. 'The automotive industry is the second-largest contributor to GDP after mining. If we allow it to shrink, the consequences will be systemic,' he said. Beyond the 110,000 people the sector employs directly, it supports hundreds of thousands more through components, logistics and retail. Both Pantsi and Biene urged the government to move past platitudes. 'We need a granular, not generic, state response,' said Pantsi. 'Targeted logistics reform. Decisive Agoa diplomacy. Training institutions revived. It's the details that matter now.' The sector at a T-junction Despite strong local sales buoyed by competitively priced imports, the export decline is a red flag. 'We have the infrastructure, the people, the expertise,' Pantsi said. 'What we lack is policy certainty and logistical coherence.' Biene was blunter: 'We're here for the long haul. But we can't keep pouring money into diesel and delays. The government needs to decide if it wants this sector to thrive – or merely survive.' DM.
