The retrenchments were flagged by MISA, the Motor Industry Staff Association, who says that it is one of the largest single actions that it has been involved in. It lays the blame, at least partially, on the number of low-cost Chinese brands that have entered the retail market.

The automotive giant Motus announced a restructuring process in terms of Section 189 of the Labour Relations Act on 9 October after reporting a 1% decline in revenue to R112.60 billion in the year ended 30 June. Its operating profit also dropped slightly to R5.48 billion.

The JSE listed company attributed its reduced revenue to lower contributions from new vehicle sales of R3.33 billion (6%), primarily in the group’s international operations.

Martlé Keyter, MISA’s Chief Executive Officer: Operations, says Tiekie Mocke, Manager of MISA's Legal Department, Ngoni Goba and Anne Marie Bodenstein, two of MISA's Senior Labour Advisors, represented the affected employees. MISA is the dominant trade union in the retail motor industry, with more than 75 000 members.

"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. Initially up to 900 employees were facing remuneration and benefit realignment. MISA’s sustained engagement significantly reduced the impact.

"Despite these efforts, MISA remains deeply concerned about proposed reductions of up to 30% cost to company (CTC), particularly where the calculation methodology remains unclear.

"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. Our commitment remains firm: to support affected members and to pursue all lawful avenues to protect their interests during this challenging transition," says Martlé.

In addition, MISA tells Dealerfloor that Motus Retail informed MISA that it needed to address the “bloated” wage bill. MISA suggested a gradual implementation of benefit cuts going forward, comparing the current situation to an overweight person who needs to lose weight to become fighting fit. This was not the view of the company, who argued that cuts needed to be made quickly for the company to remain competitive.

“Numerous new and used vehicle dealerships across the retail motor industry are suffering due to the influx of Chinese brands, but most realise that they need to ride the storm because a silver lining awaits thanks to lower interest rates, the drop in the fuel price and the performance of the rand,” says Sonja Carstens, Manager: Media and Communications Department at MISA.

In its reaction, a Motus spokesperson tells Dealerfloor that Motus Holdings Limited (Motus) can confirm that its SA Retail division entered a formal consultation process with employee representatives and relevant stakeholders, in accordance with Section 189A of the Labour Relations Act.

“The process was initiated in the fourth quarter of 2025, following an evaluation of the company's operational requirements which indicated that a review and realignment of SA Retail’s business and operating structure was necessary.

“Presently, the number of roles affected in SA Retail represents less than 2% of the overall roles in the division. The affected roles are mainly administrative or support functions.

“The CCMA has concluded its responsibilities and no longer requires any further engagement with SA Retail. MISA remains engaged on behalf of their members, as SA Retail implements what was finalised during the consultations.

“Overall, Motus remains committed to finding alternatives to possible retrenchment for the affected employees and will formally conclude the process on 31 January 2026.

“Regrettable as these role redundancies are, it is important to note that Motus South Africa recorded a net increase in headcount for the period 30 June 2025 to 31 December 2025,” the spokesperson says.

• MISA also represented its members in the closure of Exclusive Auto’s in Gezina, Pretoria, a used vehicle dealership. Exclusive Auto issued its notice of a Section 189 process in terms of the Labour Relations Act six months ago. Four MISA members were retrenched and salary cuts of up to 30% were introduced while the owner consolidated his stands to sustain the dealership. The dealership continued downhill due to a lack of sales. It was decided that Exclusive Auto was no longer financially sustainable, and another 29 MISA members were retrenched at the end of December 2025.