Fury over Goodyear’s planned closure of Kariega plant

In a move that has shaken its workforce, Goodyear SA plans to shut down its Kariega plant, with 907 jobs on the line.

Goodyear SA’s abrupt decision to cease manufacturing in SA was announced to staff by managing director Paul Gerrard, who was accompanied by bodyguards, during a brief meeting at the Despatch Town Hall.

Afterwards, about 100 workers gathered at the Willow Dam to discuss and come to terms with the news, sharing drinks as the reality set in.

Workers were not permitted to enter the plant, according to guards monitoring 12 people who were outside the facility in response to a call for more security officers.

Operations are expected to wind down in two months, according to workers.

The announcement has sparked outrage from the National Union of Metalworkers of SA (Numsa) and Solidarity.

Construction of the plant began in 1945, with the first tyre rolling off the production line in 1947.

At the dam, workers gathered around cars, drinking, talking and listening to music.

John de Kock, a team leader at the compound laboratory who has been with the company for 41 years, broke down in tears as he described the situation as a betrayal.

“I feel betrayed. They gave us no warning.

“Do they have children? Do they have communities? Because they have f***ed up a whole community.”

He said the decision would upend their lives.

“I built that company up until today, giving my all, and then everything is gone.

“When I heard him, my eyes went wet.

“But I was not thinking about myself.

“I was thinking about the [younger workers] who have just started their lives, expecting Goodyear to fulfil their lifelong plans and promises.”

Many of the workers turned their anger towards Gerrard.

Jonathan Miller, a father of three who had not yet gone home to break the news to his wife, said there was never any transparency at the company.

“No-one knew we were underperforming because we made [targets].

“Everything was fine, but then suddenly there was a meeting and in five minutes they told me the company was closing.

“Where is the transparency? Not even the managers knew.

“Goodyear is the livelihood of Kariega.”

Miller said he did not know what the future held for him.

“My oldest daughter is in grade 11, and I will now have to get her out of that school and send her to a different one because I cannot afford the monthly R2,500,” he said.

“I have to pay for my other daughter’s farewell from primary school.

“My 16-year-old has a confirmation at church later this year.

“I bought a brand-new car just last year. What am I supposed to do now?” 

The workers felt the severance package was not enough.

The company has proposed two weeks’ pay per year of service.

In addition, they will receive payment for leave and any other contractual entitlements, as well as payment instead of the notice period.

A 37-year-old, who worked as a machine operator but did not want to be named, said he did not know why the plant was closing.

“We expected the meeting to last an hour but it was only five minutes,” he said.

“They did not explain what would happen to us, what options we had or what to expect.

“They only gave us an option for counselling, which means they know what effect this will have on us.

“You see, people are laughing and drinking now but they have to go home and face their wives.

“Imagine going home to deliver information like this.

“It is heartbreaking.”

A quality control worker who has been working at the plant for 12 years said they could have at least been offered additional training.

“ContiTech behind us is closing. At least they are giving those people short courses,” he said.

“That would be helpful for us to at least put in our CVs.” 

The announcement comes four months after ContiTech announced it would shut its conveyor belt manufacturing operations in SA.

This saw 125 workers facing retrenchment.

Aspen also sent out a Section 189A notice in May,  which revealed that 134 jobs were on the line due to the closure of its eyedrop production facility in Gqeberha.

In 2018, Goodyear launched a R1bn production facility in Kariega, boosting daily tyre output from 6,900 to 9,600.

The 189A notice signed by Gerrard said the restructuring was expected to affect 907 workers in direct and indirect positions associated with the manufacturing operations.

It would also affect those in sales, administration, general management and retail posts.

“In SA, the declining medium-term outlook in available local markets continues to manifest itself with no indication of a turnaround in the longer term,” he wrote.

“A further erosion of the declining market has been occasioned by the influx of low-cost imports with which Goodyear SA is unable to compete.” 

Only 24 workers in consumer, truck sales, legal, finance, revenue management and supply chain will be retained.

Gerrard said while the European market was undergoing a rapid contraction, the existing plants on the continent were sufficiently meeting demand.

“No opportunity therefore exists to rely upon this market to sustain the South African manufacturing operation,” he said.

“Penetration of the European markets as an export destination for the South African operation, which was hoped for, has not proved possible for this reason. 

“There are 11 manufacturing facilities in Europe servicing the Europe/Middle East and Africa region, two of which are in the process of being discontinued.”

Numsa regional secretary Mziyanda Twani said it was outrageous that they had only heard about the 189 notice through the media.

“The only time I caught wind of this is when I started getting questions from you.

“I have just called the HR manager, who told me that operations are closing in SA and only sales will be left.

“We suspect that they will now be sourcing the tyres from China and India.”

He said the union would explore all avenues after it had studied the notice.

“If this has something to do with the costs of manufacturing, our national leadership will have to engage with the department of trade and  industry.”

Solidarity metal and engineering deputy general secretary Willie Venter said though the tyre manufacturing industry had faced pressure for years, the closure of such a long-standing plant in SA was devastating.

“We will enter those [CCMA] negotiations with vigour to do what we can to get the best outcome for our members,” Venter said.

“The plant has been in existence since the 1940s.

“It will not be easy for workers to get alternative jobs.

“This is almost 1,000 families that will need an alternative source of income.”

Nelson Mandela Bay Business Chamber chief executive Denise van Huyssteen said Goodyear’s withdrawal highlighted the pressure tyre manufacturers were under.

“[This is] due to enabling environment issues such as the logistics challenges; lack of service delivery at a municipal level; inadequate maintenance of electricity, water and sanitation infrastructure; increased costs relating to safety and security; above-inflation input costs for essential services such as electricity; as well as cheap tyre imports which are flooding the market,” she said.

“We continue to remain concerned about the viability of the manufacturing sector due to these basic enablers not being in place, as well as the effect of the US’s tariff policies on global manufacturing footprints.”

Mayor Babalwa Lobishe expressed deep sadness over the news.

“We wish to continue to engage the company so that we can know where we can assist because the closure of the factory means that a lot of people are going to lose their jobs, even those who are benefiting from the value chain of the factory’s existence,” Lobishe said.

A Goodyear spokesperson said the company had initiated a restructuring process in accordance with the Labour Relations Act ahead of the proposed closure of its manufacturing facility.

The business would continue to maintain a sales and distribution, and HiQ retail presence in SA.

“The process will be facilitated by the CCMA, and Goodyear will engage in it with transparency and fairness, ensuring that the dignity and interests of all those potentially impacted by the process are appropriately safeguarded,” the statement says.

The spokesperson said the company was transforming its go-to-market strategy in Europe, the Middle East and Africa to optimise its footprint and portfolio.

“This proposal is in no way a reflection of the commendable efforts or the years of dedication of our SA team, for which we are grateful,” the statement says.