Tyre giant hits the brakes: Numsa laments Goodyear closure affecting 900 jobs
Numsa warns that replacing these jobs will be difficult, as Eastern Cape is already burdened with an unemployment rate soaring above 41%.
Goodyear to close down its manufacturing plant in the Eastern Cape, affecting 900 jobs. Picture: iStock
The National Union of Metalworkers of South Africa (Numsa) has expressed deep disappointment over Goodyear's decision to restructure, which will result in the closure of its manufacturing plant in Nelson Mandela Bay, Eastern Cape.
The closure is set to impact more than 900 jobs, while thousands from secondary industries will be threatened.
In a country where unemployment remains a pressing concern, news of further job losses raises serious questions about South Africa's economic future. Yet, given the current economic climate, businesses can do little to create or retain jobs if they are struggling to remain financially viable.
'It is becoming a ghost town': 78 years of Goodyear
Goodyear tyres started manufacturing in Kariega, formerly known as Uitenhage in 1947.
Numsa confirmed it has received a section 189 notice from Goodyear Managing Director Paul Gerrard, signalling the start of the retrenchment process.
'As the region, we are deeply worried about the impact on workers and their families. It is becoming a ghost town given that ContiTech, which is part of Continental, closed down — another company in the tyre and rubber industry.'
The union stresses that it will not be easy to replace these jobs, as the Eastern Cape already has a high unemployment rate of more than 41%.
ALSO READ: Act now to absorb impact of Trump tariffs on SA vehicle manufacturing sector – BLSA
Goodyear to offer severance packages
Numsa said it will do everything in its power to negotiate fair severance packages for the affected employees. The Commission for Conciliation, Mediation and Arbitration (CCMA) will facilitate the retrenchment process.
'The dates of the first consultation will be communicated in due course,' said Numsa.
Goodyear announced the news last week.
'As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions.'
Not total closure
Goodyear will still maintain a sales and distribution presence in the country, as well as its Hi-Q retail operations.
'This proposal is in no way a reflection of the commendable efforts or the years of dedication of our South Africa team, for which we are grateful.
'As a company, we recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support,' the statement added.
ALSO READ: Sectors showing growth in job opportunities in SA
Eastern Cape in technical recession
Eastern Cape entered a technical recession in 2024 after its economy contracted for the third consecutive quarter.
A report by the Eastern Cape Socio-Economic Consultative Council (ECSECC) revealed that the province's GDP, in rand value, declined from R368.8 billion in the fourth quarter of 2023 to R366.9 billion in the first quarter of 2024.
The largest contributors to this decline were the construction, manufacturing, and mining industries. Only two industries, agriculture and electricity, saw growth in that period.
NOW READ: The dark picture of youth unemployment in South Africa
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Tyre giant hits the brakes: Numsa laments Goodyear closure affecting 900 jobs
Numsa warns that replacing these jobs will be difficult, as Eastern Cape is already burdened with an unemployment rate soaring above 41%. Goodyear to close down its manufacturing plant in the Eastern Cape, affecting 900 jobs. Picture: iStock The National Union of Metalworkers of South Africa (Numsa) has expressed deep disappointment over Goodyear's decision to restructure, which will result in the closure of its manufacturing plant in Nelson Mandela Bay, Eastern Cape. The closure is set to impact more than 900 jobs, while thousands from secondary industries will be threatened. In a country where unemployment remains a pressing concern, news of further job losses raises serious questions about South Africa's economic future. Yet, given the current economic climate, businesses can do little to create or retain jobs if they are struggling to remain financially viable. 'It is becoming a ghost town': 78 years of Goodyear Goodyear tyres started manufacturing in Kariega, formerly known as Uitenhage in 1947. Numsa confirmed it has received a section 189 notice from Goodyear Managing Director Paul Gerrard, signalling the start of the retrenchment process. 'As the region, we are deeply worried about the impact on workers and their families. It is becoming a ghost town given that ContiTech, which is part of Continental, closed down — another company in the tyre and rubber industry.' The union stresses that it will not be easy to replace these jobs, as the Eastern Cape already has a high unemployment rate of more than 41%. ALSO READ: Act now to absorb impact of Trump tariffs on SA vehicle manufacturing sector – BLSA Goodyear to offer severance packages Numsa said it will do everything in its power to negotiate fair severance packages for the affected employees. The Commission for Conciliation, Mediation and Arbitration (CCMA) will facilitate the retrenchment process. 'The dates of the first consultation will be communicated in due course,' said Numsa. Goodyear announced the news last week. 'As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions.' Not total closure Goodyear will still maintain a sales and distribution presence in the country, as well as its Hi-Q retail operations. 'This proposal is in no way a reflection of the commendable efforts or the years of dedication of our South Africa team, for which we are grateful. 'As a company, we recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support,' the statement added. ALSO READ: Sectors showing growth in job opportunities in SA Eastern Cape in technical recession Eastern Cape entered a technical recession in 2024 after its economy contracted for the third consecutive quarter. A report by the Eastern Cape Socio-Economic Consultative Council (ECSECC) revealed that the province's GDP, in rand value, declined from R368.8 billion in the fourth quarter of 2023 to R366.9 billion in the first quarter of 2024. The largest contributors to this decline were the construction, manufacturing, and mining industries. Only two industries, agriculture and electricity, saw growth in that period. NOW READ: The dark picture of youth unemployment in South Africa
