Following fruitless negotiations between South Africa’s largest retail motor group, Motus, and the industry’s largest trade union, MISA, the union is seeking a second interdict to protect its members from retrenchment.
MISA, the Motor Industry Staff Association, which represents more than 75,000 employees within the automotive sector, applied for an interdict to stop Motus from changing its members’ employment terms.
Last year, Motus began a process of realigning its operations, which included several retrenchments, following a slightly lowered performance in the previous financial year.
Earlier this week, the union submitted its first application to interdict Motus in terms of Sections 64 and 65 of the Labour Relations Act, from unilaterally changing any of the conditions of employment of MISA members.
Since the first application, SA Vehicle Retail (SA Retail), a division within the Motus Group, claimed that it was able to substantially reduce the number of employees expected to be impacted by its realignment process.
SA Retail claims it was able to reduce the number of impacted employees by more than 250, from 570 to 318, or by 44%.
The division explained that realignment of incentive structures and company car benefits was separate from the earlier retrenchment of 67 employees.
The offer Motus tabled with MISA as an alternative to forced retrenchments included leaving basic salaries unchanged, apart from senior managers who agreed to reductions up to 30%.
Realignment also excludes employees earning below R15,000 per month, while company car benefits for administrative and support staff will be adjusted in line with industry benchmarks and by less than 20% of remuneration.
SA Retail explained that potentially affected employees earn on average 160% above the Motor Industry Bargaining Council in South Africa (MIBCO) minimum.
Its revised offer, should it be accepted by MISA and its members, will see affected employees earn an average of 125% above the MIBCO minimum.
SA Retail CEO, Gideon Jansen van Rensburg, said that no changes to conditions or benefits have been made, and that all of its employees were paid full salaries and incentives on 23 January.
He added that the division’s offer to MISA has not been accepted, and the union has not put forward its own proposal.
“SA Retail remains committed to ongoing engagement with MISA and to maintaining a transparent process, with the aim of finding workable solutions that minimise the risk of further job losses,” he said.
Legal battle on the cards
MISA believed it was appropriate to seek a second interdict from the Labour Court in Johannesburg to protect its members from the “draconian, authoritarian, unfair and unlawful ultimatums of the Motus Group”.
According to Tiekie Mocke, Manager of MISA’s Legal Department, Motus retaliated against the union’s initial interdict and informed employees that it would be consulting with them directly.
Mocke claims the Motus Group told affected employees that they had until 20:00 yesterday (29 January) to furnish proposals to avoid retrenchment.
She added that unfair and unreasonable ultimatums brought by Motus are causing MISA members extreme anxiety and mental anguish.
“Certain employees have until 13:00 on 30 January, whilst other employees have until 12:00 on 2 February to accept the ‘offer of alternative employment’, failing which they will be retrenched with no severance pay,” Mocke said.
MISA’s application seeks to interdict Motus from retrenching more employees, prevent retaliation, and ensure that the group complies with the Section 189 processes set out in the Labour Relations Act.
The union believes its members require protection from their employer and seeks to interdict Motus from consulting directly with MISA members.
MISA noted that if its application is heard after MISA members have been retrenched, the court must order Motus to reinstate MISA members on the same employment terms they enjoyed before 13 January.
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