The South African Federation of Trade Unions (SAFTU) declares its full solidarity with the National Union of Metalworkers of South Africa (NUMSA) and the more than 900 workers facing retrenchment due to the planned closure of Goodyear South Africa’s plant in Kariega (formerly Uitenhage).
This decision, by a multinational company that has operated in South Africa since 1932, is nothing short of an economic betrayal of the workers and communities who built its profits over 90 years. We now face a coordinated wave of industrial disinvestment across the Eastern Cape — and workers are being left to carry the cost.
A Triple Jobs Crisis in the Eastern Cape
Goodyear’s closure comes on the heels of another major blow: Conti-Tech, a subsidiary of Continental Tyres operating from the same Kariega facility, is also winding down. Conti-Tech manufactures conveyor belts for Eskom and the mining sector, meaning this closure will also hurt critical public and industrial services.
And now, in Gqeberha (Port Elizabeth), Aspen Pharmacare — a major pharmaceutical company — is retrenching workers as well. NUMSA is among the unions engaged in negotiations with Aspen to defend jobs. This shows that the crisis is no longer isolated — it is systemic.
All these decisions are being taken in a province where the expanded unemployment rate is already at a staggering 49.0%, according to StatsSA’s Q1 2025 Labour Force Survey. These closures will deepen poverty, accelerate migration, and destroy any hope of economic transformation.
These Are Not Failing Companies — They Are Profitable and Supported by the State
Goodyear posted $70 million in profits for 2024, and Conti-Tech supplies the country’s most strategic economic sectors. Both companies have benefited directly or indirectly from government incentive schemes, such as the Automotive Investment Scheme (AIS) and industrial support from the Department of Trade, Industry and Competition (DTIC).
Aspen has received billions in government contracts and subsidies, including during the COVID-19 pandemic — and now is shedding workers despite a continued profitable business model.
These companies are not closing due to collapse — they are pursuing cost-cutting and global restructuring strategies at the expense of South African workers. This is an abuse of public trust, and a demonstration of why corporate control cannot be trusted to deliver economic justice.
SAFTU Demands: A Just Transition, Not a Jobs Bloodbath
We reject these closures outright. SAFTU demands:
- Emergency Negotiations with All Stakeholders
SAFTU calls on NUMSA, Goodyear, Conti-Tech, Aspen, DTIC, and relevant public agencies to immediately convene crisis negotiations to halt closures and develop job-saving alternatives. - Moratorium on Closures
Suspend all retrenchment and closure processes while social and industrial impact assessments are conducted, and worker-led alternatives are fully explored. - Worker Ownership and Industrial Retention Plans
Convert the Goodyear and Conti-Tech operations into worker-owned cooperatives, supported by DTIC, IDC, and SEDA. Leverage public procurement, financing, and technical support to build a democratic industrial future. - Retraining and Skills Development
Implement a comprehensive skills programme for affected workers to transition into green industries, logistics, health manufacturing, and the social economy — coordinated through a national Just Transition Fund. - Public Audit and Exit Penalties
Companies that abandon workers and communities after decades of extracting value must face exit taxes, and return all unfulfilled state subsidies or procurement advantages.
The Eastern Cape Cannot Be Sacrificed
Kariega, Gqeberha and the broader Eastern Cape are being sacrificed to multinational profit-making. But SAFTU and NUMSA will not allow the working class to be discarded. We will mobilise, we will protest, and we will fight for an economy built by and for the workers – not looters in boardrooms.
This is a defining moment for South Africa’s industrial future. Either we surrender to deindustrialisation and corporate greed, or we rise to defend jobs, sovereignty, and economic justice.
A Statement was issued on behalf of SAFTU by General Secretary Zwelinzima Vavi.
For more details, contact the National Spokesperson at:
Newton Masuku
066 168 2157
Newtonm@saftu.org.za
