By Levy Masiteng
The National Union of Metalworkers of SA (Numsa) has reached an improved severance deal with Goodyear South Africa (GYSA), following the closure of its Kariega manufacturing plant in the Eastern Cape.
The company will now pay each worker a lump sum of R100,000, in addition to other benefits.
The agreement follows a meeting held between Numsa and Goodyear last week where the union rejected the company’s initial offer of a “lousy R50,000” and two weeks’ remuneration per completed year of service.
In June, the company initiated a Section 189A process to restructure its manufacturing operations in Kariega, which has resulted in over 900 job losses.
“We rejected this position with the contempt it deserves,” Numsa general secretary Irvin Jim said on Monday.
The new deal includes four weeks’ remuneration per completed year of service, accrued leave pay and a gratuity equating to one month’s remuneration.
Workers will receive payment of a contractual notice period, this year’s bonus entitlement and full remuneration for this month of August.
The union said in a statement that packages would vary depending on the length of service.
Workers with zero to five years of service would receive an average of R233,650, while those with 26 years or more of service would get an average of over R1 million.
“Numsa succeeded in pushing GYSA to agree that 17 workers on fixed-term contracts must also benefit from the negotiated package,” Jim said.
“We also secured a commitment from GYSA not to dispose of its property and assets for a period of two months, allowing us to explore alternative solutions to save the manufacturing plant.”
He said the union was working with the government and strategic stakeholders to find a solution to save the plant and protect jobs.
“We will continue to do everything within our power to secure sustainable solutions that protect jobs and safeguard the future of this plant,” Jim said.
The union also called on the government to take decisive measures to protect South Africa’s manufacturing sector, including increasing tariffs and implementing policies to support industrialisation and job creation.
“We need government to act with urgency and determination to develop and implement an industrial strategy that not only prevents further disinvestment but actively supports the recovery and growth of our manufacturing sector,” Jim added.
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