South Africa’s largest trade union federation, Cosatu, has expressed concerns regarding the retrenchments implemented by the major automotive retailer, Motus.
The automotive retail giant, whose global partners include Hyundai, Renault, and Kia, has been forced to retrench 86 staff as it feels the pressure from Chinese carmakers in South Africa.
Retrenchments took effect on 31 December 2025, and 579 more staff have been impacted by remuneration and benefit changes from 1 January 2026.
One of the parties involved in the retrenchment process was the Motor Industry Staff Association (MISA), which called it “one of the biggest” retrenchments they handled in 2025.
MISA spokesperson Sonja Carstens told Newzroom Afrika that Motus informed the trade union in October that it intended to initiate retrenchment consultation.
“This came only a month after Motus reported a 1% decline in its revenue, down to R112.6 billion for the year ended 30 June 2025,” said Carstens.
Motus also saw its operating profit drop slightly to R5.48 billion.
She said Motus Retail informed MISA that it had an inflated wage bill and thus was looking at retrenching 258 of its 4,264 employees.
Through negotiations with Motus, that number was brought down to 86, which Carstens said is still too many.
“In the current economic situation, 86 is still a high number of people to lose their jobs.”
Carstens said a further 900 employees would be affected through benefit and remuneration cuts, some of whom face an up to 30% decrease in their cost-to-company.
One of the main contributing factors that led to the retrenchments is the brand’s loss of market representation, something Carstens says is not unique to Motus.
“We have had several other large motor groups struggling with the same issue this year, due to the influx of Chinese brands.”
These brands entering the local market have had a massive effect on competition within the retail industry, offering new vehicles at prices comparable to used.
Carstens said the other groups simply incorporated the Chinese offerings into their line-ups as a result, minimising the effects.
She added that competition is not necessarily a bad thing, as the motor retail industry continues to grow and create employment opportunities.
A decision condemned by Cosatu
In a statement released on Friday, Cosatu expressed deep concern about the potential for further job losses within the industry.
It raised concerns over reports alluding to salary cuts for hundreds more workers within the motor retail sector.
“The Federation is extremely worried that Motus, a key motor vehicle retailer, may retrench hundreds and slash the wages and benefits of even more,” Cosatu said.
“South Africa, with an already painfully high unemployment rate of 42.4%, cannot afford to lose a single job nor condemn any family to absolute poverty and despair.”
It noted that workers have to support an average of seven relatives while contending with the rising cost of living and the pressure of massive debts.
Cosatu said it welcomes reports of progress in preliminary engagements between Motus and the trade unions, and urged the employer to return to the negotiating table to find a solution.
“Whilst we sympathise with and share the industry’s concerns about the very real threat posed to local businesses and jobs by cheap Chinese imports, what is needed are progressive long-term solutions that protect workers and their families,” the federation said.
Cosatu believes there exists a need in the sectoral master plan between government, business, and labour, in which it assesses the threats posed by Chinese imports.
“They should include measures to protect locally produced vehicles from cheap imports being dumped into South Africa,” it said.
The federation called for the reskilling of at-risk workers and engagements with Chinese and Indian brands to set up factories to manufacture new vehicles locally.
Cosatu said it will continue to closely monitor the situation, while supporting unions and workers in the sector.
“This is a battle that workers and the local motor manufacturing industry simply cannot afford to lose,” it concluded.
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