The National Union of Metalworkers of South Africa (NUMSA), which recently called on all workers at Goodyear South Africa (GYSA) who were affected by the looming closure of the plant to attend a General Meeting in Kariega, has confirmed a new and improved severance package for its affected members. 

The union, through its spokesperson, Phakamile Hlubi-Majola, indicated that Goodyear was offering R50,000 to the workers as part of the separation package, a figure rejected by the union in light of the impact the closure would have on employees and their families.

News that after 78 years of manufacturing tyres in Kariega, Nelson Mandela Bay, the Goodyear factory would close its plant was not well received in light of the country’s unending battle with increased unemployment figures.

On Monday, NUMSA announced a new package which includes an improved severance deal in terms of which each retrenched employee would receive R100,000, plus four weeks’ pay for every year worked.

“The meeting of 14 August 2025 took place against the backdrop of GYSA’s resistance to improving the lump sum offered to workers, which was R50,000 and two weeks pay for each completed year of service. This position was rejected by NUMSA.

“Whilst NUMSA strongly disagrees with GYSA in respect of the closure of its Kariega Manufacturing Plant, given that the plant is quite capable of being saved, but GYSA is not interested in doing so in that it simply gives effect to the corporate decision of its parent company to shift all production volumes from South Africa to Europe – and as such GYSA is on record that it is not interested in engaging in discussions on “profitability” and the volumes required to reach “break-even point,” the union’s General Secretary, Irvin Jim said.

The tyre maker confirmed the shutdown of its South African production operations in June, with improved severance terms only taking effect on Friday.

NUMSA has indicated that in addition to the severance lump sum, employees will also receive an extra month’s salary, full pay for August, and all bonuses owed.

Furthermore, Jim said the union has finally accepted the sad reality that the tyre company is intent on closing its manufacturing operations at all costs.

siyabonga.sithole@inl.co.za

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