The Motor Industry Staff Association (Misa), the largest union in the automotive sector, has declared a dispute with Motus Holdings, South Africa’s large automotive group, to halt the company’s plans to cut employees’ benefits and salaries by 30%.
Motus operates in Southern Africa, the United Kingdom and Australia (Motus Holdings), dealing in vehicle sales, rentals, distribution and parts. The decision to cut salaries comes after the JSE-listed company felt the heat from Chinese car brands in SA, leading to lower sales.
The company retrenched some of its employees on 1 January 2026, and the cutback plan will affect hundreds of employees. While this might be a move to save the company some money, its CEO received an increase in remuneration, according to the group’s financial statement for the year ended 30 June 2025.
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Motus cutback plan
Motus’ cutback plan has been received with criticism, with Misa approaching the Motor Industry Bargaining Council’s (MIBCO) Dispute Resolution Centre (DRC).
According to Misa, Motus Retail informed affected employees on 14 January 2026 that the following will be implemented in their employment:
- 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 added that its consultations with Motus reached a deadlock. “In terms of section (64), Motus Retail may not implement these unilateral changes, pending the resolution of the dispute,” said Misa.
Union’s plan to stop Motus
Martlé Keyter, Misa’s CEO, said the union will approach the Johannesburg High Court to obtain an interim interdict should Motus not halt the implementation of the cutback plan.
“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.”
There seems to be conflicting numbers on how many employees were retrenched from 1 January 2026. Misa has the number of retrenched employees as 86, while Motus told The Citizen that 67 employees were retrenched.
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Restructuring process
According to a media statement shared with The Citizen by Motus, SA Vehicle Retail (SA Retail/Motus Retail), a division under Motus Holdings, initiated a restructuring process in July 2025 following a re-evaluation of the division’s operational performance and requirements.
The statement details that senior management will receive a 30% salary reduction, but not all employees.
“Following the re-alignment of roles and responsibilities, the simplification of structures and the implementation of operational efficiencies, senior management within SA Retail agreed to salary reductions of up to 30% from August 2025,” read the statement.
Ordinary staff affected
Motus added that after a three-month Commission for Conciliation, Mediation and Arbitration (CCMA) facilitated process, they identified 259 administrative and support-related redundant positions.
Of these 259 affected positions, SA Retail was able to identify alternative arrangements, including redeployment across the broader Motus Group, for 74% of the affected employees. “67 employees could not be redeployed and were retrenched in January 2026,” said the company.
“SA Retail was guided by the CCMA, [which] facilitated the process and advised that any reduction in earnings in excess of 30% would not be fair and reasonable.
“After due consideration, SA Retail decided to only re-align incentive structures and company car benefits for administrative and support-related employees in line with industry benchmarks.
“The re-alignment of incentives and company car benefits is expected to impact approximately 570 administrative and support-related employees by less than 20%.”
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Salary adjustments
No adjustments will be made to basic salaries, the company said.
“In addition, SA Retail decided that employees earning less than R15 000 per month would not be negatively affected by the re-alignment process.”
Gideon Jansen van Rensburg, CEO of SA Retail, said: “I acknowledge that the past few months have been particularly challenging for many of our people on the SA Retail team, and I would like to thank everyone for their understanding and support throughout this process.”
“SA Retail remains committed to acting responsibly, engaging transparently and ensuring that all employees are treated with fairness, dignity and respect. I am confident that these actions will continue to support a sustainable dealership network that remains effective for all our employees, as well as our customers and stakeholders.”
Is Motus in trouble?
According to the financial statement for the year ended 30 June 2025, the company reported a 1% decline in revenue to R112.60 billion and a drop in operating profit to R5.48 billion.
Van Rensburg admitted in a letter to shareholders that the company should have added the Chinese brands to its dealerships earlier.
“In our retail business in SA, our strategy regarding Chinese brand representation was initially too defensive,” he said.
“It is important to note, however, that transitioning from established brands that are losing sales, but retain good levels of workshop servicing and therefore parts activity, to emerging brands in high demand, but that need time to build up aftermarket activity, is complex.
“Such transitions need to be deftly handled to balance volumes and profitability. That said, we accept that we initially moved too slowly in this regard but are making significant progress.”
Staff salaries vs CEO salary
According to the company’s latest financial statement, Motus spent R10.1 million on 20 131 employees’ compensation.
“Salaried employees are eligible for a mix of fixed and variable pay, including TGP and/or STIs, LTIs, and other benefits,” read the statement. “We benchmark remuneration on an ongoing basis.”
Van Rensburg got a salary package of R35.5 million during the period, an increase from R34.7 million he received in 2024.
His basic salary for 2025 was over R10 million, an increase from the R6.3 million he received in 2024.
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