Numsa is working with government to take over the manufacturing plant after Goodyear insisted on removing its intellectual property.
The National Union of Metalworkers of South Africa (Numsa) have claimed a small victory as Goodyear’s production plant in the Eastern Cape closes.
Goodyear confirmed the shutdown of its South African production operations in June, with improved severance terms being agreed on Friday.
Headquartered in the US state of Ohio, the multinational giant ended its 78-year association with South Africa.
Goodyear severance payouts
The company will still retain a retail presence in the country, but Numsa said this will have little consolation, as they revealed the severance terms at a briefing in Johannesburg on Monday.
Goodyear initially offered workers R50 000 severance pay and two weeks’ pay for every year employed, with Numsa securing a doubling of that offer for members.
In addition to the severance lump sum, employees will receive an extra month’s salary, full pay for August and all bonuses owed.
For those who had obtained bursaries or were pursuing trade examinations through the company, the payment of those programmes will be honoured by Goodyear.
The bill for counselling sessions, medical-aid obligations and an undisclosed amount set aside for an education and work security fund will also be footed by Goodyear.
Numsa has 488 affiliated employees with between one and 26 years at the plant, and they will receive between roughly R200 000 and R650 000 each.
The Kariega factory had 64 Numsa member with between 26 and over 40 years of service, and they will receive in excess R1 million each.
Segment losses for tyre company
Just last week, Goodyear reported global net income of $254 million for the second quarter of 2025 — up from $79 million from the same period last year.
“The second quarter proved challenging in both our consumer and commercial businesses, driven by industry disruption stemming from shifts in global trade – including a surge of low-cost imports across our key markets,” stated Goodyear CEO Mark Stewart.
South Africa falls into Goodyear’s Europe, Middle East and Africa (EMEA) business segment, which recorded a loss for the second quarter of 2025.
“Segment operating loss of $25 million was $55 million lower than last year, driven by higher raw material costs, the non-recurrence of the 2024 net insurance recoveries, and inflation,” the company stated when announcing its quarterly performance.
In the last six months the EMEA segment recorded the sale of 23.6 million tyre units, but at a 1.1% operating margin loss.
Goodyear were asked by The Citizen what percentage of the segment South Africa comprises, but no response was forthcoming.
Goodyear’s Americas and Asia Pacific segments recorded positive operating margins of 5.7% and 9.4%, respectively.
‘Risk of deindustrialisation is no longer a distant threat’
Numsa called Goodyear’s decision to close the Kariega plant “unscrupulous” and wanted the company to donate the plant and intellectual property to the community.
“[Goodyear] ultimately agreed not to dispose of its property and whatever other assets fall outside of its claimed intellectual property for a period of two months, as to enable Numsa to further pursue discussions with government,” stated Numsa General Secretary Irvin Jim.
“To this effect, with the support of national government — the Department of Trade Industry and Competition in particular), the Industrial Development Corporation has made an expression of interest to Goodyear to take over the plant infrastructure,” he explained.
Jim called on government to take “decisive measures” to protect the manufacturing sector, including tariffs, a ban on tyre imports, tighter tax regulations on multinational companies and a coherent state-led industrial strategy.
“The risk of deindustrialisation is no longer a distant threat; it is a reality we are already facing, made worse by rising unemployment and economic hardship for workers,” Jim concluded.
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