GOODYEAR South Africa said it has initiated consultations under Section 189 of South Africa’s Labour Relations Act, a process that allows for engagement with unions and affected employees before final decisions are implemented, according to a media release posted on Monday.
“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,” the company said in statements issued to South African media.
Despite the plant closure, Goodyear said it will continue to operate its sales, distribution, and HiQ retail network in the country.
The closure forms part of Goodyear’s Europe, Middle East, and Africa (EMEA) restructuring plan. The US-based tyre giant confirmed in a filing with the US Securities and Exchange Commission (SEC) on 5 June that it had “approved a proposed plan to close our manufacturing facility in Kariega.” The decision was formally taken on 2 June.
Numsa’s response
According to the media statement posted on Monday, the National Union of Metalworkers of South Africa (Numsa) reacted to the announcement with dismay, warning of deep social consequences for workers and the region.
Numsa said it had received a Section 189 notice from Goodyear management on 6 June, formally placing 907 jobs on the line.
The union’s Eastern Cape regional secretary, Mziyanda Twani, is quoted as saying: “We are deeply worried about the impact on workers and their families… Uitenhage is becoming a ghost town, and it may not be easy to replace these jobs.”
Numsa has vowed to fight for fair severance packages and to explore alternatives to closure during the consultation process.
In an opinion piece published by BusinessLIVE on 9 June, the International Trade Administration Commission of South Africa.(Itac) chief commissioner, Ayabonga Cawe, wrote an article in his personal capacity, giving some global context to the closure.
He said, “The Kariega situation with Goodyear is one of many manifestations of the crisis confronting industrial firms within buyer-driven value chains, which are increasingly characterised by overcapacity. It tells us something about the spillovers from unfair trade flows, and how firms in tradable sectors respond to arbitrage opportunities in world markets.”
