The National Union of Metalworkers of South Africa (NUMSA) has successfully negotiated a new severance package for workers at Goodyear South Africa (GYSA) in Kariega, amid the company’s impending plant closure. After 78 years of manufacturing tyres, the news of GYSA’s shutdown has sparked widespread discussion and concern across social media platforms, following the firm’s decision to restructure its business operations and relocate production to Europe.
In a recent meeting held on 14 August 2025, NUMSA representatives, led by spokesperson Phakamile Hlubi-Majola, revealed that GYSA initially offered a lump sum severance payment of R50,000, which NUMSA deemed inadequate given the gravity of the situation facing employees and their families. Facing strong opposition, the union rejected this proposal, labelling it as ‘lousy’ and particularly inappropriate given the closure’s impact. NUMSA firmly believes that the Kariega plant is viable and can be salvaged, but expressed frustration over GYSA’s apparent disinterest in discussions regarding operational profitability and sustainability.
In a significant turnaround, the union announced that the new severance package includes R100,000 for each retrenched worker, along with four weeks’ pay for every completed year of service. This improved offer was introduced after NUMSA engaged in a formal facilitation process under Section 189A for determining appropriate severance arrangements. Moreover, all employees are set to receive an additional month’s salary, along with full pay for August and any outstanding bonuses, providing a much-needed financial buffer for those affected by the plant’s closure.
NUMSA General Secretary Irvn Jim acknowledged the harsh reality of GYSA’s decision to end its manufacturing operations, revealing that the union has shifted its focus towards achieving equitable severance terms. “While NUMSA strongly disagrees with GYSA regarding the closure of its Kariega Manufacturing Plant, we have accepted that the company is determined to proceed with this decision at all costs,” stated Jim, highlighting the union’s commitment to ensuring that workers are treated fairly during this challenging transition.
The shutdown of South African production operations had initially been confirmed by Goodyear in June, leaving many workers uncertain about their futures. As discussions continue, NUMSA remains firm in its stance on advocating for the rights and livelihoods of those whose jobs are now at risk, as the fate of the GYSA plant hangs in the balance.
Pictures: NUMSA X page
