Goodyear exit seen as betrayal by unions and workers
Goodyear to close down its manufacturing plant in the Eastern Cape, affecting 900 jobs. Picture: iStock
Department of trade, industry and competition officials are in discussions with the Goodyear tyre company in a last-ditch effort to stave off the closure of the company's factory in Kariega in the Eastern Cape, which could cost more than 900 jobs.
Department spokesperson Yamkela Fanisi said this was to assess the possibility of a deal being struck along the lines of the one implemented by the Industrial Development Corporation (IDC) to avert job losses at ArcelorMittal.
The IDC provided a R1.68 billion facility to ArcelorMittal, leading to the deferring of the closure of two key steel mills in Newcastle and Vereeniging, saving 3 500 jobs.
Goodyear hasn't expressed view on possibilty of IDC deal
Goodyear has not expressed a view on the possibility of a deal with the IDC, saying only it was committed to supporting affected employees through the process.
'The minister sees this as devastating for the economy,' said Fanisi.
Goodyear said Section 189A retrenchment notices have been served on workers.
ALSO READ: Tyre giant hits the brakes: Numsa laments Goodyear closure affecting 900 jobs
With secondary industries such as catering, security and corporate social investment projects dependent on Goodyear, the closure of its operations is expected to have a ripple effect on Eastern Cape communities.
Political economist Sam Koma said the ArcelorMittal-IDC model could be applied to avert the Goodyear crisis.
'The reasons ArcelorMittal announced the closure of its operations are similar to Goodyear: competition from cheaper products, mainly from China, and high electricity costs.
ArcelorMittal-IDC model could be applied
'There should be negotiations involving Goodyear, the trade, industry and competition and labour departments to arrive at a mutually beneficial outcome.'
SA Federation of Trade Unions general secretary Zwelinzima Vavi said: 'This decision by a multinational which has operated in South Africa since 1932, is nothing short of economic betrayal of the workers and communities who built its profits over 90 years.
'Goodyear's closure comes on the heels of another major blow: Conti-Tech, a subsidiary of Continental Tyres, is also winding down. 'And in Gqeberha, Aspen Pharmacare is retrenching workers.'
NOW READ: Act now to absorb impact of Trump tariffs on SA vehicle manufacturing sector – BLSA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 days ago
- IOL News
EFF demands Minister Tau explain ANC appointments to IDC board
The EFF is calling on Minister of Trade and Industry Parks Tau to explain the recent appointments of high-profile ANC figures to the IDC board, questioning the criteria and motivations behind these appointments. Image: Cape Argus Mzwandile Masina, chairperson of a Parliamentary Portfolio Committee on Trade, Industry and Competition, is mulling over a request by the EFF to summon Minister Parks Tau to appear before committee to be grilled on the appointments of prominent ANC figures to Industrial Development Corporation (IDC). Masina said on Sunday that he has responded to the EFF in writing, undertaking to provide a detailed answer within 48 hours after Monday, pending consultation with Parliament's legal advisors. The EFF had asked Masina to summon Tau to explain the appointment process for Ayanda Dlodlo, Dr Nomusa Dube-Ncube, and Dr Sydney Mufamadi to the IDC board, questioning the criteria used and suggesting the appointments are politically driven. Asked if he will grant the EFF's request and summon Tau to appear before the committee, Masina said: 'I have written to the EFF and undertook to respond fully in writing within 48 hours after Monday. This will be after receiving full legal counsel from Parliament.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ EFF national spokesperson and MP Sinawo Thambo expressed grave concern over the recent appointments of the three ANC loyalists to the IDC board. 'All three of these individuals are deeply entrenched ANC loyalists, with lengthy careers inside government structures under the ANC-led administration,' the party said in the letter to Masina. The EFF pointed out that Dlodlo has a history of serving in senior government positions as an ANC-aligned official, including stints as Minister of State Security and Minister of Public Service and Administration. The EFF also highlighted that Dube-Ncube is a former ANC-elected Premier of KwaZulu-Natal, while Mufamadi is a veteran ANC figure who remains deeply embedded in the party's political circles. Thambo said: 'It is further alarming that Dr Dube-Ncube was recently removed from a proposed appointment to the BANKSETA (Banking Sector Education and Training Authority) board, following concerns over the irregularity of her nomination. Her reappearance on the IDC board, so soon after this debacle, suggests that public institutions are being used to recycle and reward ANC-aligned figures, and not based on skill or strategic fit, but due to political favour.' He questioned the appointments, saying they are not only inappropriate but also compromise the IDC's role as a developmental finance institution aimed at driving industrial transformation, supporting black industrialists, and fostering inclusive economic growth. He said the EFF has formally requested the portfolio committee to urgently summon Tau to appear and provide a full explanation of the selection process for the IDC board appointments, among other pressing concerns. The party also wants Tau to explain the criteria used to assess the suitability of the appointees and whether they possess the necessary industrial or developmental expertise and experience to justify their appointments. 'As the legislative oversight body, the Portfolio Committee has a duty to prevent the continued erosion of governance, and to ensure that public entities like the IDC are not transformed into political patronage networks,' the EFF said. Tau's spokesperson, Yamkela Fanisi, has yet to respond to a request for comment on whether the Minister considers the appointments of the trio to be above board and fair. The IDC, on the other hand, has welcomed Gloria Serobe as its new board chairperson, along with six other new members. Serobe, co-founder and CEO of Women Investment Portfolio Holdings, brings extensive experience in governance and business leadership, having held senior roles at Denel, Adcorp, Sasfin, Old Mutual, and Nedbank.
The South African
18-06-2025
- The South African
Government wants to intervene in latest factory closure
Government and trade unions are hosting urgent talks after another major factory closure in South Africa was announced. Specifically, the Goodyear tyre factory in Kariega, Eastern Cape, will be shutting its doors. In the face of cheap Chinese imports and uncompetitive energy and transport costs, the multinational company sees no other option but factory closure. However, within the context of rising unemployment in the province, industry stakeholders believe an economic disaster is looming. Once considered the heart of South Africa's manufacturing sector, the Eastern Cape's unemployment rate now sits at 49%. The level of unemployment in the province is so worrying, Stats SA highlighted as much in its latest Quarterly Labour Force Survey 2025. Above-inflation increases to energy and transport costs are making tyre manufacture in South African unviable. Image: Pexels Nevertheless, the Department of Trade, Industry, and Competition (DTIC) hopes to intervene to prevent the factory closure, reports BusinessTech . Besides the factory closure itself, the DTIC worries about secondary industries dependent on the plant. 900 potential job losses don't account for the likes of catering, cleaning, security, and corporate investment initiatives. Similar to interventions to prevent steel giant ArcelorMittal South Africa (AMSA) from shutting down, government hopes to find a solution. However, this is provided the company is willing to cooperate. So far, the multinational has remained silent on the matter, saying it only wants to 'optimise its footprint in South Africa.' As such, the closure forms part of a broader streamlining operation across Europe, the Middle East and Africa. The factory closure is part of a broader restructuring and may not be reversible. Image: File Former South African ambassador to Japan, Smuts Ngonyama, urged government to intervene. He stressed that the plant's continued operation is vital not just for the region's economy but also for the dignity and livelihoods of its workers. Meanwhile, labour unions have also raised concerns with the South African Federation of Trade Unions (SAFTU). 'These decisions will deepen poverty, accelerate migration, and destroy any hope of economic transformation in the Eastern Cape,' warned the unions. Only time will tell if the company's commitment to global transformation will stymie any efforts to reverse this decision. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
18-06-2025
- The Citizen
Standard Bank's ‘disproportionate' attempt to foreclose on Vavi's home fails
Bank was also claiming more than R160 000 in legal costs from Vavi and his wife – twice the value of their current repayment arrears. Saftu General Secretary Zwelinzima Vavi and his wife can stay put, for now. Picture: Neil McCartney / The Citizen Standard Bank has failed in its attempt to obtain authorisation for the foreclosure of a mortgage bond it granted over the Sandton primary residence of South African Federation of Trade Unions (Saftu) General Secretary Zwelinzima Vavi and his wife Noluthando. The judgment highlighted the high legal costs that result from mortgage bond arrears and foreclosure, with the bank claiming more than R160 000 in legal costs from the couple – twice the value of their current mortgage bond repayment arrears. Judge Stuart Wilson said Standard Bank had placed nothing before him explaining why execution against the Vavis' home is a proportionate means of recovering the arrears. He postponed the application brought by the bank indefinitely on Tuesday and ordered that each party should pay its own costs. Wilson said a court asked to authorise foreclosure against a debtor's primary residence must be satisfied that to do so would be proportionate. Read more The Art Lab: A space for collaboration, experimentation, and creativity at Nelson Mandela Square He added that foreclosure is generally proportionate when there is little meaningful prospect of the debt secured against the residence being recovered in some other way – and when the interest of the creditor in obtaining payment outweighs the interest of the debtor in retaining ownership of the home. Standard Bank was seeking a money judgment and leave to execute it against the primary residence of the couple, whose indebtedness arose from a mortgage bond passed over the property. ALSO READ: Court rules in favour of clients in Standard Bank home loan dispute Steps taken to reduce arrears – judge Wilson said the fact that the property is, on the face of it, an expensive dwelling in a well-heeled suburb makes no difference to the fundamental inquiry – but cases in which it would be disproportionate to authorise execution of a proven mortgage debt against such a property are likely to be rare. However, he said: 'This is such a case. The Vavis owe around R1.68 million on their bond, and are in arrears to the tune of just over R85 000 – or around four months' worth of instalments. 'The arrears were accumulated around three years ago, and since then the Vavis appear to have serviced their bond punctiliously while taking steps to reduce their arrears from just under R170 000 when the application was instituted to around R85 000 today. 'The latest home loan statement filed shows around 18 months of apparently perfect adherence to the Vavis' obligations to pay their monthly instalments.' ALSO READ: Class action suit shows banks sell repossessed houses for cents in the rand Legal costs and arrears 'separate issues' Wilson added that Standard Bank claims over R160 000 in legal costs against the Vavis – and it is apparent from the affidavits that the bank has tied the resolution of this dispute to the settlement of those costs. 'It is at least possible that the Vavis have balked at paying legal costs of twice the value of their current arrears. 'It seems to me that the Vavis would be entitled to rehabilitate the loan agreement by paying their arrears and then debating the reasonableness of those costs with Standard Bank as a separate issue, but I cannot say why the arrears have not been settled. 'Nevertheless, in the absence of more information, I cannot presently conclude that foreclosure against the Vavis' home is a proportionate means of liquidating their arrears.' Although the judge postponed the application sine die (indefinitely), Wilson said the bank may renew the application if and when it presents evidence that foreclosure would be proportionate. ALSO READ: What to do if you start falling behind on your home loan Financial woes The Vavis have been in the news for other alleged arrears related to their Sandton home. City Press reported in February 2024 that Vavi and his wife had been taken to court by the City of Johannesburg (CoJ) Metropolitan Municipality for allegedly failing to pay more than R400 000 in outstanding levies for their home. It said the CoJ was seeking an order from the High Court in Johannesburg that would compel the couple to pay an amount stipulated as R433 493 after they had applied to the municipality for provision. The article said it had previously reported on their financial woes, which it claimed began in 2022 when Standard Bank applied for a writ of execution on the same house after accusing them of non-payment. It subsequently reported that Noluthando Vavi said they only became aware of the court papers when inquiries were made by City Press about their home, which they bought for R2 million in 2008. It is unclear what happened to the CoJ's arrears high court application. This article was republished from Moneyweb. Read the original here.
