A sense of uncertainty hangs over Northern KwaZulu-Natal as yet another wave of job losses threatens the region. Sumitomo Rubber South Africa (Pty) Ltd (SRSA), trading as Dunlop Tyres South Africa, has announced a business restructure at its Ladysmith plant in an effort to safeguard long-term sustainability.
In a statement issued on Wednesday, 29 January 2024, the company confirmed that, in accordance with the Labour Relations Act, it has engaged the Commission for Conciliation, Mediation and Arbitration (CCMA) to facilitate consultation sessions with both unionised and non-unionised employee representatives as part of a Section 189A retrenchment process.
This process, which commenced on 15 November 2024, is now in its final stages.
“Despite extensive efforts and strategic adjustments to optimize production at the Dunlop uMnambithi (Ladysmith) plant, the steadily declining automotive market demand and conditions had led to the business restructuring,” the company stated, as it now prepares to retrench a number of employees.
Moreover, the final number of job losses is still being determined.
Dunlop Tyres SA CEO Lubin Ozoux underscored the difficulty of the decision, stating: “Implementing the business restructure was not a decision we made lightly, but it is essential to secure the sustainability of the business and protect as many jobs as possible for the long-term. Our focus is to sustain our local tyre manufacturing operations in South Africa to continue contributing to the region’s economic stability.”
Before resorting to retrenchments, Dunlop Tyres SA implemented various cost-saving and efficiency optimisation measures in an attempt to stabilise operations.
“We are committed to providing employees with the resources and support necessary during this transition. Sumitomo Rubber Industries (SRI), the parent company of SRSA, have offered their support during the business restructure transition and are optimistic that our local operations will be able to turn things around,” added Ozoux.
As this announcement comes in the wake of ArcelorMittal’s decision to unwind its Newcastle Works and Vereeniging Works Longs business, adding further strain to the region’s industrial sector, what are your thoughts on the above? Share your views in the comment section below
8 Responses
How sad!Another victim.of Cadre ramaposa and Tau . They climg to China whilst destroying the steel, clothing and now tyre industry.
Auto industry to follow soon.
Cares destroying industrialisation.
Back t9 the donkey and a Chinese bicycle as with Zimbabwe 2.
The cancer government and its cronies are to blame for all the job losses in SA, but the idiots voting for them will keep on voting for a cheap chinees tshirt.
We understand the situation that the company is facing but instead of retreching people my solution why the company is not druping the hours because maybe is a time being the company not making what it supposed to make it now when the time goes on the situation will become ryt Aldo.is biggest company in ladysmith that put more value in ladysmith expecial in retails store without this company the most of retail will not survive at all
Thankyou
We all know that the Gauteng and KZN are no longer an interest to the ANC hence all the long time businesses are threatening to shut down, now we are suffering for the political battles.
Sad news but I think the company can do better by taking other avenues, 1 make employees work 8hrs shift 40 hrs a week 2 lay-off and stop being tactical and say they are restructuring,this is a retrenchment as per section 189 lastly Ladysmith is a small town it u retrenchment 200 employees,it becomes multiple by the number of depends to those wage’s , if one supports 10 and then 2000 pls will be affected
The root cause of job losses is the government’s lack of will to impose higher import duties and protect local jobs. If Trump was our president he would protect local jobs with higher tariffs. Cheap Vehicles, Tyres and Steel from the far east heavily subdidised are flooding SA market and they have no intention of building their factories in SA because of BBBEE, so the jobs are in China and we 40% unemployment and high crime, people have to eat. The future of SA is dire, no future for our children, and I mean all race groups.
So sad indeed. Chinese vehicles and tyres are indeed flooding the market everywhere in South Africa. No matter what you buy, it most probably comes from China. With these conditions prevailing, how can companies based here survive…. We defenitely need the government to step up, start taking note of all this and act QUICKLY before it is too late. But the question is….will they ever?
It’s very disturbing what Dunlop is planning to do. Hundreds of jobs are now in the edge