By Lehlohonolo Lehana.
Giant tyre manufacturer Goodyear has officially closed its plant in Kariega in the Eastern Cape after 78 years in operation in South Africa.
The factory, in Kariega (formerly Uitenhage), was opened in 1947.
Many workers have slammed the company’s final severance offer, which includes a once-off payment of R50,000 and three weeks’ pay for every year worked.
Numsa general secretary Irvin Jim said the negotiations with the manufacturing company would continue at the Commission for Conciliation, Mediation and Arbitration (CCMA) on Friday.
Earlier this week he expressed his dissatisfaction after disclosing that the company was offering R50 000 to the workers as a part of the separation package.
“Goodyear is ready to close this plant today, but we have been pushing back and the money they are offering is a little bit better, though I am not in a position to disclose it yet, “he added.
In an earlier statement, the company said that it was transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.
“As part of that transformation, Goodyear SA 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.
“Goodyear SA will continue to maintain a sales and distribution, and HiQ retail presence in South Africa.”
The restructuring process is being facilitated by the Commission for Conciliation, Mediation and Arbitration.
“As a company, we recognise our responsibilities towards our employees and their families and are firmly committed to acting fairly and providing them with appropriate support,” a Goodyear statement said.
Meanwhile the Economic Freedom Fighters (EFF) said, the Goodyear closure is a reminder that South Africa’s economy is stagnant and leaderless, with no clear programme for industrialisation, manufacturing, or job creation.
“The ANC government has failed to protect our people from poverty and unemployment, and it has failed to offer any hope of economic transformation, said the Red Berets.”