Automotive retailing giant Motus Retail is staring down legal action following its decision to retrench several employees at the end of last year.
The car dealer made the decision to axe 86 jobs, as well as cut the salaries and remuneration packages of over 500 of its employees, due to growing market pressures and an influx of Chinese brands.
Motus Group announced its decision in terms of Section 189 of the Labour Relations Act on 9 October, after the JSE-listed company reported a 1% decline in its annual revenue.
It still managed to earn R112.60 billion in the year ended 30 June. The retailer’s operating profit dropped slightly to R5.48 billion.
This was as a result of lower new vehicle sales, which still totalled R3.33 billion, and primarily felt in its international operations.
Since effecting retrenchments, the retailer has faced severe backlash for its decision, and is now facing a legal battle with the retail motor industry’s biggest trade union, the Motor Industry Staff Association (MISA).
MISA declared its dispute against Motus’s unilateral changes to the terms and conditions of employment of affected employees with the Motor Industry Bargaining Council’s Dispute Resolution Centre.
The union also sent a letter of demand to the retailer to stop its intended implementation of remuneration cuts of up to 30%, which will affect 532 employees.
MISA says Motus informed its members on 14 January of the following changes:
- Reduced basic salaries.
- No entitlement to company vehicles and vehicles to be returned by 31 January 2026.
- No entitlement to car-, fuel-, travel- and cell phone allowances.
- No entitlement to receive incentives and/or commission.
The union stated that, in accordance with Section 64, Motus Retail may not implement these unilateral changes until the dispute is resolved.
Consultations between the two parties have reportedly been at a standstill.
Legal action ensues
Since negotiations have hit a wall, MISA has decided to take legal action against South Africa’s largest automotive retailer if its demands are not met.
The union’s Operations CEO, Martlé Keyter, said MISA will approach the Johannesburg High Court with an application for an interim interdict against the retailer to prevent the implementation of its remuneration changes.
“MISA’s members did not agree to any of the salary or benefit cuts. They were not given an alternative option,” she said.
“MISA confirmed that Motus Retail cannot unilaterally implement cuts to existing conditions of employment.”
Keyter further explained that Motus Retail does not operate in “a silo”, and that it is but one division of a very profitable company.
She added that the Motus Group has, to date, not attempted to place a moratorium on the filling of vacancies and that it continues to advertise positions in other divisions.
These advertised positions may have been suitable for those affected within the Motus Retail division, according to Keyter.
“MISA will continue to address the reasonableness and fairness of Motus Retail’s decisions and to support affected members and to pursue all lawful avenues to protect their interests during this challenging transition,” concluded Keyter.
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