Goodyear workers get R100,000 each as plant shuts after 78 years

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By Anita Dangazele

  • Goodyear workers get R100,000 each plus four weeks’ pay per year worked after union talks improved the original R10,000 offer.
  • The 78-year-old Kariega plant employed over 900 people and only 35 workers remain for maintenance after Friday shutdown.

Goodyear workers will each get R100,000 plus four weeks’ pay per year worked, along with August salaries and 2025 bonus payments.

The plant, which opened in 1947 and employed over 900 people, shut down suddenly on Friday, leaving only 35 staff for maintenance.

Goodyear South Africa has closed its Kariega tyre plant after 78 years, leaving more than 900 workers without jobs.

The closure comes after long talks between unions and the company about exit packages.

The final deal means each worker will get R100,000 plus four weeks’ pay for every year worked. Workers will also be paid their August salary and their 2025 bonuses.

At first, Goodyear offered workers only R10,000 and two weeks’ pay per year of service. This was later raised to R50,000 and three weeks’ pay before the final settlement was agreed on.

Shop steward, Lusindiso Mayekiso, who had been working at Goodyear for 35 years before that said he was happy with the settlement offer but wished the company could find an investor who would continue with the legacy. 

“I’ve worked here for 35 years, our fathers and brothers also worked here before that. I have children who also work here. And I’m hopeful that the unions and the government will secure a sponsor that will keep the plant running. We also have young people here who had just started and had bought homes and cars so we need this legacy to continue,” he said.

Solidarity and the National Union of Metalworkers of South Africa represented the workers in the talks.

Numsa secretary general Irvin Jim said the union had successfully got a much better exit package.

Numsa succeeded in getting a big improvement on the initial package, which was grossly unfair and that Goodyear wished to force on these workers, despite their years of loyal service.

“The more important improvements were increasing severance package pay from two weeks’ pay per completed year of service to four weeks’ pay for each completed year of service,” said Jim.

The workers were told on Friday that production had stopped with immediate effect.

Jim said the company had chosen 35 workers to remain for maintenance work for one or two months.

Goodyear announced in June that it would close its manufacturing operations in South Africa but keep its sales, distribution and Hi-Q retail business.

The company thanked workers in a message, saying it was “a difficult step” and that retrenchments would start immediately.

Many workers said they were still unhappy. One worker said: “This is not only about us. The cleaning staff and suppliers will also lose jobs.”

The Kariega plant produced its first tyre in 1947. Its closure is seen as a heavy blow to the Nelson Mandela Bay economy.

Pictured above: The Goodyear Plant in Kariega, Nelson Mandela Bay. 

Image source: Facebook

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