The Congress of South African Trade Unions (COSATU) in the Eastern Cape is deeply concerned by the impending closure of the Goodyear SA manufacturing plant in the Nelson Mandela Bay Metropolitan area, putting more than 900 jobs at risk, in particular in Kariega.

Goodyear SA has been manufacturing tyres in Kariega (formerly Uitenhage) since 1947. Alongside Volkswagen SA, it has been one of the major employers, providing livelihoods across Nelson Mandela Bay. The company’s decision to discontinue manufacturing operations in the country is both shocking and concerning as it will not only impact on the 900 jobs directly linked to the plant but will also affect secondary industries such as security and catering.

The company has issued Section 189 notices to workers as per the Labour Relations Act and the CCMA is set to facilitate the process. The discontinuation of Goodyear SA business operations will have dire consequences for workers, their families as well as other businesses that were supported by workers employed at Goodyear. The Eastern Cape province will be adversely affected by any retrenchments as the levels of unemployment are already alarmingly high at 49% (expanded definition).

All efforts to provide alternatives to job losses must be considered during the consultation process. Government must intervene to avert job losses particularly as the Nelson Mandela Bay Business Chamber has attributed the fall in fortunes of tyre makers to lack of service delivery at municipal level including inadequate maintenance of electricity, water and sanitation infrastructure; increased safety and security costs; logistical challenges as well as cheap trye imports flooding the market.    

COSATU is ready to provide its full support to labour unions at Goodyear SA as they engage in the Section 189 process.  This crisis must be treated as a national calamity given the very real dangers it poses to the entire value chain and motor manufacturing industry, workers and their families and their communities.  If we are to ensure that we not only retain this strategic sector, but in fact expand it and place South Africa firmly on the path to economic growth and industrialisation, then government must intervene.

The Federation will be seeking decisive action from the Department of Trade, Industry and Competition in this regard.

Issued by COSATU Eastern Cape

Mkhawuleli Maleki (Provincial Secretary)

Mobile: 082 339 5482

Email: mkhawuleli@cosatu.org.za