Goodyear's SA operation skidding to a halt
The company has initiated a Section 189A consultation process, which is expected to lead to the closure of its plant in Kariega, Eastern Cape.
This factory has been operational for 78 years (since 1947).
The National Union of Metalworkers of South Africa is dismayed by the decision, warning that the closure could result in the loss of over 900 jobs.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
a day ago
- The Citizen
Empangeni mall construction workers hand over memorandum to employer
Workers at the construction site of the Prince Buthelezi Mall in Empangeni are expected to resume work tomorrow (Thursday) after downing tools and handing over a memorandum of demands to the employer on Wednesday. The National Union of Metal Workers of South Africa (Numsa) affiliated members accused the employer of flouting labour relations laws, having allegedly recruited foreign nationals without legitimate documentation. Leading a peaceful march to hand over a memorandum of demands to the subcontractor, Numsa organiser in Richards Bay, Ntokozo Mhlongo said their gathering was owing to growing dissatisfaction of their members employed by the construction company. 'The employees, with an understanding of the challenges that they are confronted with, have taken a decision to join Numsa and project their chosen union as their shield and spear,' said Mhlongo. The workers' list of demands include that the company should urgently afford the union organisational rights enshrined in Section 21 of the Labour Law Act; recruitment of 90% of residents; compliant with the rate of pay governed by the bargaining council for civil engineering; and payment of workers per national minimum wage. 'There are allegations of workers not being paid for overtime worked, Sundays and public holidays. Numsa wants the company to urgently comply with the Basic Conditions of Employment Act in terms of how Sundays and public holidays should be paid,' said Mhlongo. The union further alleged that 'bullying acts' in the company are not properly addressed by management. 'Numsa, therefore, wants the company to urgently investigate and take appropriate steps as corrective measures on this matter,' added Mhlongo. Speaking on behalf of the mall developers, a spokesperson confirmed that they are aware of the matter and the issues raised on Wednesday morning, but that these have since been resolved, and construction work continues on site. The spokesperson said no construction time had been lost. Addressing employment concerns, the spokesperson said they always place a lot of pressure on the subcontractors to ensure recruitment of local workers. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
19-06-2025
- IOL News
Denel's wage dispute: Workers demand 7% increase after years without raises
Workers affiliated to the National Union of Metalworkers of South Africa picket outside Denel headquarters in Centurion, demanding a salary increase. Image: Oupa Mokoena / Independent Newspapers Denel, the state-owned arms manufacturer, told the National Union of Metalworkers of South Africa (Numsa) that a 7% wage increase is unaffordable and unsustainable in the long term, but offered a 4% increase instead. This was made known on Wednesday during a closed-door meeting between the union leaders and Denel's board members in Centurion, where Numsa-affiliated workers picketed outside the company's headquarters. Regional Secretary Jerry Morulane said the meeting aimed to find a resolution on implementing a 7% wage increase. He said: 'Workers at Denel spent the duration of the meeting picketing outside in order to highlight their demands. The meeting was attended by the executive management, the board and recognised unions.' 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 Next Stay Close ✕ He said Denel executives had initially approved and communicated a 7% wage increase to employees earlier this year, but the board later intervened, reversed the decision, and unilaterally implemented a 4% increase for the 2025/26 financial year. Numsa members have rejected the proposal of 4% saying the last time workers received an increase was in 2019. Morulane noted that during the Covid-19 lockdown, several state-owned enterprises were restructured under the leadership of then Public Enterprises Minister Pravin Gordhan. He said: 'During that time, as part of the plan to 'save Denel', workers endured many months without any kind of salary. Many of them lost assets, and even homes. Others were forced to take their children out of school. The financial distress caused so much misery, that unfortunately, it is alleged that two employees passed away due to suicide.' He said Denel workers feel they made sacrifices to save the entity and now deserve a wage increase, given their struggles with the cost of living. Acting board chairperson Gloria Serobe explained that Denel cannot afford a 7% wage increase as it would be unsustainable in the long term. She said Denel can afford to implement a 4% wage increase. Morulane said: 'After extensive negotiations, it was agreed by all parties that a task team or 'war room' would be established to find a sustainable way to fund the increase. The task team has been established to look at the practicality of the successful implementation of the corporate plan, which shall in turn, assist in funding the increase demanded by workers.'
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.
