NUMSA Secures Improved Severance Packages Amid Goodyear Plant Closure
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The National Union of Metalworkers of South Africa (NUMSA) has announced that it reached a settlement with Goodyear South Africa (GYSA) following the company’s decision to close its Kariega manufacturing plant.
The agreement, concluded on 15 August 2025 after Section 189A consultations, increases severance pay from two to four weeks’ remuneration per completed year of service and includes a lump sum of R100,000 per worker. NUMSA said this was a significant improvement from GYSA’s initial offer of R50,000 and two weeks per year of service.
According to NUMSA, 552 of its members are affected by the closure, with severance packages varying by years of service. Workers with over 26 years’ service will receive an average of more than R1 million, while those with up to five years will receive around R234,000. Fixed-term contract workers and non-unionised staff also benefit, bringing the total number of workers covered to 707.
While GYSA has refused to transfer its intellectual property or donate its facility, it agreed not to dispose of its property for two months to allow NUMSA, government, and potential investors to explore alternatives to save the plant. The Department of Trade, Industry and Competition (DTIC) and the Industrial Development Corporation (IDC) have expressed interest in supporting this process.
NUMSA criticised Goodyear’s decision to shift production to Europe, warning of broader risks to South Africa’s tyre manufacturing sector and downstream industries. The union urged government to act against tyre dumping, strengthen tariffs across manufacturing sectors, and impose stricter localisation requirements on automotive imports.
NUMSA also called for reforms in the steel sector, measures against profit shifting by multinational companies, and urgent interventions to stabilise Eskom and Transnet in order to safeguard industrialisation.
General Secretary Irvin Jim emphasised that the closure of Goodyear’s Kariega plant represents not only a loss for workers and the local community but also a serious threat to South Africa’s manufacturing base. NUMSA pledged to continue working with government and stakeholders to protect jobs and industrial capacity.
