Latest news with #GoodyearSouthAfrica
The Star
a day ago
- Automotive
- The Star
Goodyear South Africa's restructuring puts over 900 jobs at risk
Yogashen Pillay | Published 2 hours ago 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". 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.' Ndou added that the structural reforms may help to significantly improve the tyre manufacturers' competitiveness by ensuring the availability of reliable power and water supplies, and not an above-inflation increase in administered prices. 'These factors are crucial for the local industry's competitiveness.' BUSINESS REPORT Visit:
IOL News
2 days ago
- Automotive
- IOL News
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.'
IOL News
4 days ago
- Automotive
- IOL News
Another blow to Eastern Cape job market as Goodyear signals plan to shut Kariega factory
Goodyear has announced plans to shut its only factory in South Africa. Image: File Tyre manufacturer Goodyear is set to close its only factory in South Africa. The company says it has initiated a Section 189A process that will result in the closure of its plant in Kariega, in the Eastern Cape, which first opened its doors in 1947. The move is expected to result in the loss of around 900 factory jobs, with a number of sales, administrative, and management roles also being in jeopardy. In a statement issued to the media, Goodyear South Africa said it would continue to maintain a distribution and retail presence in South Africa. The company said the restructuring was in line with its strategy to 'optimise' its footprint and portfolio in the Europe, Middle East and Africa region. Big concerns for Kariega However, the move has, quite rightfully, been slammed by organisations such as the National Union of Metalworkers (NUMSA), which said it was dismayed at the announcement, which will result in the loss of at least 907 jobs. 'We are deeply worried about the impact on workers and their families, in Uitenhage (Kariega). 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. 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 ✕ '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. 'Whilst the outlook is bleak, as NUMSA, we stand ready to do everything we can to defend the jobs of our members, and to do all we can to negotiate fair severance packages. The dates of the first consultation will be communicated in due course,' Numsa added IOL
IOL News
4 days ago
- Automotive
- IOL News
Another blow to Eastern Cape workers as Goodyear signals plan to shut Kariega factory
Goodyear has announced plans to shut its only factory in South Africa. Image: File Tyre manufacturer Goodyear is set to close its only factory in South Africa. The company says it has initiated a Section 189A process that will result in the closure of its plant in Kariega, in the Eastern Cape, which first opened in 1947. The move is expected to result in the loss of around 900 factory jobs, with a number of sales, administrative, and management roles also being in jeopardy. In a statement released on Thursday, Goodyear South Africa said it would continue to maintain a distribution and retail presence in South Africa. The company said the restructuring was in line with its strategy to 'optimise' its footprint and portfolio in the Europe, Middle East and Africa region. However, the move has, quite rightfully, been slammed by organisations such as the National Union of Metalworkers (NUMSA), which said it was dismayed at the announcement, which will result in the loss of at least 907 jobs. 'We are 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. 'Whilst the outlook is bleak, as NUMSA, we stand ready to do everything we can to defend the jobs of our members, and to do all we can to negotiate fair severance packages. The dates of the first consultation will be communicated in due course,' Numsa added IOL
Daily Maverick
5 days ago
- Automotive
- Daily Maverick
Goodyear to shut down Nelson Mandela Bay manufacturing plant — 900 jobs at risk
After 78 years of manufacturing tyres in Kariega, Nelson Mandela Bay, the Goodyear factory will close. Restructuring that includes the closure of the company's manufacturing arm in South Africa will take place – Section 189A retrenchment notices have been served. The jobs of 900 workers are at risk and thousands of jobs from secondary industries are being threatened as Goodyear announced this week that it was closing its factory in Nelson Mandela Bay. The factory, in Kariega (formerly Uitenhage), was opened in 1947. About 900 employees will lose their jobs, but fears are that this will have a larger secondary impact as other industries, such as catering, security and corporate social investment projects will be affected by the decision. Company representatives would not answer questions on Thursday, but issued a general statement confirming that it was shutting down its manufacturing arm in South Africa. 'Goodyear is transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio. '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. Goodyear South Africa will continue to maintain a sales and distribution, and Hi-Q retail presence in South Africa,' the statement read. '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,' the statement added. The process will be facilitated by the CCMA. '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 company's statement continued. National Metal Workers Union representative Phakamile Hlubi-Majola said the union had not yet received a Section 189 notice from Goodyear. CEO of Nelson Mandela Bay Business Chamber Denise van Huyssteen said the chamber would assist workers through its job loss mitigation initiative. The initiative connects companies seeking artisans with those whose jobs had been made redundant. Previously, the chamber helped redirect employees of specialist tyre manufacturer, Continental Conti-tech when it closed its plant in Nelson Mandela Bay. Van Huyssteen said the chamber was saddened to receive the news of the Goodyear retrenchments at the Kariega factory. 'This comes just months after Conti-tech announced that it was closing its plant, and the Bridgestone plant closure of over four years ago. 'This highlights the massive pressure which tyre manufacturers are under due to enabling environment issues such as the logistics challenges; lack of service delivery at a municipal level; inadequate maintenance of electricity, water and sanitation infrastructure; increased costs relating to safety and security; above-inflation input costs for essential services such as electricity; as well as cheap tyre imports which are flooding the market,' she said. Nduduzo Chala from the South African Tyre Manufacturers Conference said that while he wanted to allow Goodyear to go through the process it had begun, he could say that trading conditions for local manufacturers had been very difficult over the past few years. The conference represents the four big tyre manufacturers in South Africa — Bridgestone, Dunlop, Goodyear and Continental. 'The market has been plagued with an unfair trade environment. It is a question of producers vs importers, and low-cost products have been introduced into the market,' he said. He said they had persuaded the government, even though it took more than a year, to introduce anti-dumping duties on China recently. 'It was a very unfair trading environment,' he said. 'But there are always loopholes, and the Chinese companies are now shifting operations to Thailand, Cambodia and Vietnam. We then had to do the same for these countries,' he said. 'However, the sustainability of manufacturing has become challenging,' Chala said. DM
