Motus retrenches 86 employees as financial pressures mount in motor retail sector
As Motus seeks to adjust to a rapidly changing market environment, the fallout from these retrenchments is likely to ripple through both the company and the broader automotive landscape, posing ongoing challenges for workers and unions alike in the months ahead.
Image: Supplied
In a stark beginning to the New Year, automotive retailer Motus has retrenched 86 employees from its workforce, a decision that underscores the challenging economic landscape facing the South African motor retail industry.
This significant reduction follows the announcement of sweeping remuneration and benefit changes that will impact a further 579 employees from 1 January 2026.
The retrenchments come as one of the largest interventions orchestrated by the Motor Industry Staff Association (MISA) this year, driven by intensified competition from an influx of Chinese automotive brands that have significantly pressured local operators.
The restructuring process was initiated under Section 189 of the Labour Relations Act, as Motus reported a minor 1% decline in revenue to R112.60 billion for the year ending 30 June, alongside a slight decrease in operating profit to R5.48 billion.
Financial analysis by the JSE-listed company attributed the downturn to a 6% dip in contributions from new vehicle sales, amounting to R3.33 billion, particularly within their international operations.
As the automotive giant navigates these troubled waters, MISA has been pivotal in advocating for the rights of affected employees.
Martlé Keyter, MISA’s Chief Executive Officer: Operations, provided insight into the trades union's intervention, which notably involved collaboration with MISA's legal and advisory teams, including Tiekie Mocke, Ngoni Goba, and Anne-Marie Bodenstein.
"MISA worked tirelessly with members and the employer's representatives to save jobs and to resist unreasonable reductions to remuneration and the removal of long-standing benefits," Keyter stated.
Initially, up to 900 employees were threatened with remuneration and benefit realignment; however, MISA’s sustained engagement led to a significant reduction in the number directly impacted.
Martlé Keyter, MISA’s Chief Executive Officer: Operations.
Image: Supplied.
Despite these negotiations, Keyter voiced her concerns regarding the prospective reductions of up to 30% in cost-to-company (CTC) packages, particularly given the ambiguity surrounding the calculation methodologies employed.
“MISA did not sign an agreement at the conclusion of the final facilitation session and continues to assess the reasonableness and fairness of the implemented changes,” Keyter added.
“Our commitment remains firm: to support affected members and to pursue all lawful avenues to protect their interests during this challenging transition.”
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