The National Union of Metalworkers of South Africa (Numsa) has asserted that the Goodyear South Africa (GYSA) Kariga manufacturing plant could have been saved, but the company is insisting on moving production to Europe.
Irvin Jim, the Numsa general secretary, argued that the company has shown no interest in discussions about profitability or the measures required to make the plant sustainable
“As such, GYSA is on record saying that it is not interested in engaging in discussions on profitability and the volumes required to reach break-even points,” said Jim.
“Numsa accepted the objective reality that GYSA is intent on closing its manufacturing operations at all costs.”
He said despite failed attempts to help save the company, Goodyear will grant improved packages to employees as the company shuts down its manufacturing operations.
Jim said Goodyear had initially offered workers a settlement of R50 000 and two weeks’ pay for every year of service. He described the offer as grossly unfair.
Following several consultations, he said, the meeting from August 15 concluded that each worker will now receive four weeks’ pay for every completed year of service, together with a lump sum of R100 000.
707 employees to benefit
According to Jim, Numsa has 552 members at the plant, and 335 of these members would make an average of R500 000.
Those with fewer than five years of service will receive packages of about R234 000, while the 64 members with more than 26 years at the company will receive an average of R1-million.
He said 17 workers who were employed on fixed-term contracts will benefit from the negotiated package, and 35 workers also qualify for the agreement, bringing the total number of beneficiaries to 707.
“It is recorded that the company set aside funds agreed upon for the purpose of establishing an educational fund for associates and that a work security fund was established with the provisions of the 2004 industry main agreement.
“That effect was not, however, given to the establishment of the educational fund or the distribution of monies set aside for either the education fund or the work security fund,” said Jim.
He said the closure is not only devastating for the workers and their families but also for the local community and South Africa’s broader tyre manufacturing industry.
He warned that the closure sets a dangerous precedent where multinational companies abandon manufacturing in the country while continuing to sell imported products.
State of collapse
Jim said the government should consider increasing tariffs across the automotive, tyre, steel, and engineering sectors to protect what remains of the country’s manufacturing base.
He also emphasised a ban on tyre and carbon black dumping, stronger measures against multinational companies using what he called tax avoidance schemes, and tighter conditions on incentives to ensure that foreign vehicle brands establish assembly plants locally rather than relying on imports.
“We hope to not be misunderstood, but the facts remain. The country has been led into a state of collapse by the neoliberal agenda and the Washington consensus.
“These same policies are why figures like [US President Donald] Trump are imposing tariffs globally without a coherent industrial policy, plunging American workers into poverty, unemployment, and inequality.
“It is this neoliberal agenda, together with austerity measures, that has driven de-industrialisation in both the USA and South Africa, fuelled by the misguided notion that the state has no business in business, while hollowing out the state and ceding development to the market,” said Jim.
