Union secures wage victory amid SA tyre industry's struggles
Goodyear SA closed its manufacturing plant in Kariega in August, resulting in the retrenchment of more than 900 employees. Ford Motor Company SA and Aspen have also initiated retrenchment processes.The National Union of Metalworkers of SA has signed a three-year wage deal with employers in the troubled tyre manufacturing industry for above-inflation increases of 5.
5% in July 2025 and 5% in the outer years of the agreement. The inflation rate is 3.4%. The pay deal ending in July 2027 reflects "Numsa's unwavering commitment to improving the lives of workers," spokesperson Phakamile Hlubi-Majola said on Friday. The pay deal comes two months after the Goodyear tyre manufacturing plant in Kariega shut its doors in August after unions secured an improved severance deal, which would see each retrenched employee receive a lump sum, plus four weeks' pay for every year worked. The workers would also get their August salary and a 2025 bonus entitlement accrual. More than 900 people were employed at the plant, whose closure is a significant blow to the car manufacturing-heavy Nelson Mandela Bay economy. The company announced in June it would shut down its manufacturing operations in SA, retaining only its sales, distribution and Hi-Q retail presence in the country.SA is the largest tyre market in Africa when it comes to production and consumption. The sector, which is facing significant competition from cheaper imported tyres, is valued at R25bn annually and dominated by Bridgestone, Continental, Goodyear and Sumitomo . Market research portal Research and Markets reports about 8.1-million new tyres were produced locally in 2024 and 8-million tyres were imported. Goodyear was also reportedly closing factories in Germany, affecting about 1,750 jobs. In the US, Goodyear was cutting about 850 jobs in Virginia. The plant closures were aimed at lowering operational costs and increasing efficiency, among other things.Kolisi shines in 100th Test as Boks down France in Paris cauldron
Bridgestone Continental Goodyear Sumitomo South Africa Largest Tyre Market Imported Tyres Competition Above Inflation Wage Increase South Africa Tyre Industry Tyre Production And Consumption Tyre Manufacturing Sector Nelson Mandela Bay Economy Inflation Rate
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