By 
Goodyear South Africa (GYSA) is one of the latest multinational companies in the country to announce that they will be disinvesting in the South African market, putting about 900 jobs at risk.
The company has highlighted that its parent company has taken a strategic cooperate decision to move its production volume from South Africa to Europe. A decision the company seems unwilling to negotiate to keep its doors open and find investors who can keep the company afloat and save the much needed jobs.
The Economic Freedom Fighters (EFF) has expressed concern in this development, arguing that the exit of GYSA is but a symptom of a stagnant economy and lack of leadership in the country.
According to the party, the closure of the manufacturer in Kariega, in the Eastern Cape comes at a time when South Africa is drowning in unemployment, with the Eastern Cape recording one of the highest unemployment rates in the country, sitting at 49% under the expanded definition.
“The closure of Goodyear is not an isolated incident, but part of a broader collapse of what little industry remains in our country. As it stands, Murray and Roberts, a major South African construction company is in the process of liquidation, while over the past two years, we have witnessed the scaling down of major companies such as Continental’s Conti-Tech, and Aspen Pharmacare resulting in severe retrenchments,” said the EFF.
In its closure, Goodyear offered its employees a lump sum pay-out of R50 000, of which the National Union of Metalworkers of South Africa (NUMSA) rejected. The union further engaged the company and managed to secure a R100 000 severance package, with four weeks’ remuneration for each year completed.
“Whilst NUMSA strongly disagrees with GYSA in respect of the closure of its Kariega Manufacturing Plant, given that the plant is in fact quite capable of being saved, but GYSA is not interested in doing so in that it simply gives effect to the corporate decision of its parent company to shift all production volumes from South Africa to Europe – and as such GYSA is on record that it is not interested in engaging in discussions on “profitability” and the volumes required to reach “break-even point” – NUMSA accepted the objective reality that GYSA is intent on closing its manufacturing operations at all costs,” said NUMSA.
NUMSA has reached a settlement agreement with GYSA which includes:
Accrued leave which may be due to the Affected Associates as at their individual affected dates
A gratuity equating to one month’s remuneration
A lump sum severance pay of R100 000
Four weeks per completed year of service, with years of service being deemed to be complete where an Associate has served six or more months in any one year of service
Payment of the contractual entitlement to notice, in lieu of the notice which would otherwise be served
The 2025 accrual for bonus entitlement of associates, as at 20 September 2025
Payment of full remuneration for the month of August 2025, for those associates who are released from the service of the Company prior to this date (15 August 2025).
