The National Union of Metalworkers of South Africa (NUMSA) is locked in urgent negotiations with tyre manufacturer Goodyear to prevent its planned shutdown, which threatens to worsen the Eastern Cape’s escalating unemployment crisis.
NUMSA Secretary General Irvin Jim confirmed the ongoing discussions during his address at the NAACAM Show in Gqeberha, where industry leaders gathered to confront mounting challenges in the automotive sector. His remarks come just days after new quarterly unemployment figures revealed that the Nelson Mandela Bay region has lost 42,000 jobs in the past three months—a devastating blow to South Africa’s manufacturing heartland.
Automotive Sector Under Siege
The Eastern Cape, home to major automotive plants, faces a wave of potential closures and retrenchments. Goodyear’s impending shutdown follows looming threats from Volkswagen and Mercedes-Benz, which recently issued Section 189 retrenchment notices. While Jim clarified that Mercedes-Benz and VW are not closing entirely, he condemned Goodyear’s “arrogant” approach, accusing the company of disregarding workers after years of service.
“Goodyear is offering workers a paltry R50,000 lump sum to exit,” Jim said. “We reject this. We are fighting for better packages and exploring alternatives, including a government-led buyout with the Industrial Development Corporation (IDC).”
Global Pressures, Local Failures
Jim linked the crisis to global trade tensions, citing U.S. protectionist policies under former President Donald Trump, which he argued disadvantage African manufacturers. He urged the South African government to impose stricter tariffs and crack down on dumping—a practice where cheap imported tyres from countries like India and Cambodia flood the local market, undermining domestic production.
“Government must act decisively to protect local manufacturing,” Jim insisted. “We cannot allow multinationals to shut plants here while keeping their distribution networks—profiting from South Africa while destroying our jobs.”
Legal Battle Looms
Should negotiations fail, NUMSA plans to take Goodyear to court and file for business rescue to halt the closure. Jim also called for rapid intervention through training layoff schemes to support workers in the supply chain affected by temporary shutdowns, like Mercedes-Benz’s recent month-long pause.
Eastern Cape’s Economic Emergency
The job losses in Nelson Mandela Bay reflect a broader collapse in South Africa’s industrial base. Jim blamed decades of neoliberal policies and austerity measures, demanding an expansionary government budget to revive infrastructure projects and stimulate job creation.
“The Eastern Cape cannot afford austerity—we need bold industrial policy,” he said. “Without it, more factories will close, and more workers will suffer.”
What’s Next?
NUMSA’s meeting with Goodyear on Thursday could determine the fate of hundreds of jobs. Meanwhile, the union is pressuring government to enforce trade reciprocity with the U.S. and leverage the African Continental Free Trade Area (AfCFTA) to strengthen regional manufacturing.
As the NAACAM Show continues, industry stakeholders are left grappling with a critical question: Can South Africa’s auto sector survive this storm?
