The Goodyear SA plant in Kariega shut its doors on Friday after unions secured an improved severance deal in terms of which each retrenched employee would receive R100,000, plus four weeks’ pay for every year worked.
The workers will also get their August salary and 2025 bonus entitlement accrual.
More than 900 people were employed at the plant, whose closure is a significant blow to the Nelson Mandela Bay economy.
The company announced in June that it would shut down its manufacturing operations in SA, retaining only its sales, distribution and Hi-Q retail presence in the country.
The first tyre rolled off the production line at the plant in 1947.
Solidarity and Numsa represent the workers.
Solidarity metal and engineering deputy general secretary Willie Venter said the company informed union officials during settlement talks that it would no longer close down operations in phases.
“The unforeseen was that people would stop work [on Friday]. So, no more production and no-one was to report for work on Monday.”
The unforeseen was that people would stop work [on Friday]. So, no more production and no-one was to report for work on Monday.
— Willie Venter
Solidarity metal and engineering deputy general secretary
However, he said about 60 workers, picked by the company, would stay on to perform maintenance.
“We do not have any indication of the duration of the employment, but we assume it will be a month or two to make sure everything gets finalised.”
Venter said the union’s members accepted the offer.
“All our members had already accepted the previous offer, so this was an even better one that was finalised,” he said.
Goodyear SA’s first offer was two weeks’ pay for each year of service and R10,000. This was later improved to three weeks and R50,000.
Numsa general secretary Irvin Jim said the union would address a media briefing on Monday.
The company sent messages to employees on Friday thanking them for their service.
“Goodyear SA confirms it has reached an agreement with labour on the terms of the closure of its manufacturing plant and restructuring of its sales, administration and general workforce,” it said.
“Today, we take the difficult step to announce the effective end of our manufacturing operations within SA. Retrenchments will begin immediately.
“We wish to take this opportunity to express our deepest gratitude to our associates for their years of dedicated service to our company.”
A Goodyear spokesperson sent the same message in response to questions by The Herald.
Despite the payout increase, many workers said they were unhappy.
One employee, who asked not to be named, said the plant’s closure would hurt their families.
“We told Jim to try for R150,000 but to take [the final revised offer] if he is not successful,” he said.
“But this is not [only] about us; the people who work for cleaning contractors will also lose jobs.
“The suppliers to Goodyear will also lose money.”
The Herald
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