Johannesburg – The National Union of Metalworkers of South Africa (Numsa) has confirmed that it has secured an improved severance package deal for workers affected by the closure of Goodyear South Africa’s Kariega plant in the Eastern Cape.
Goodyear initiated a Section 189A retrenchment process in June, which has resulted in more than 900 job losses at the tyre manufacturer’s Kariega operations. Since then, Numsa and the company have been locked in negotiations to improve the exit packages for employees.
Addressing the media in Newtown, Johannesburg, on Monday, 18 August 2025, Numsa Secretary-General Irvin Jim said the settlement was finalised on Friday.
“Numsa succeeded in attaining a substantial improvement on the grossly unfair minimum package which Goodyear wished to impose on the workers, despite their years of loyal service,” Jim said.
Read | Goodyear Shuts Nelson Mandela Bay Factory as Tyre Maker Exodus from SA Continues
Key improvements to the deal include:
- Severance pay doubled from two weeks’ remuneration per completed year of service to four weeks.
- A lump sum of R100 000 for each worker, on top of the severance payout.
Jim further explained that of the 525 Numsa members at the Kariega plant, about 235 members – representing 65% – will receive packages averaging R500 000. Workers with zero to five years’ service will walk away with approximately R234 000, while 64 members with over 26 years’ service stand to receive around R1 million each.
Jim hailed the agreement as a victory for workers, saying it would help cushion the devastating impact of the job losses.
“This outcome proves once again that when workers are united and fight together through their union, they can secure justice, even against powerful multinational corporations,” he said.
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