Motus, South Africa’s largest vehicle showroom, says its senior management has led by example by agreeing to pay cuts as it looks to rein in runaway costs in its local retail division. The JSE-listed group said on Tuesday that the division employs about 4,000 people in its 300-strong dealership network. It said the restructuring of the division started in July to realign the business “in response to the current competitive South African automotive retail landscape”.
Senior management in the division took 30% pay cuts as early as August. The company said it had gone to great lengths to avoid a jobs bloodbath in the division. “In an attempt to avoid further job losses and retrenchments and to ensure long-term job security for the majority of the division’s employees, SA Retail followed extensive consultations with unions and staff representatives.
SA Retail was guided by the CCMA [Commission for Conciliation, Mediation and Arbitration] who facilitated the process and advised that any reduction in earnings in excess of 30% would not be fair and reasonable,” the company said in a statement. Motus, worth R23bn on the JSE, was reacting to a statement by the Motor Industry Staff Association (Misa), the largest union in the sector, which said it had declared a dispute with Motus, trying to block the company’s plans to implement benefit and salary cuts. Motus said no adjustments will be made to basic salaries and that employees earning less than R15,000 a month will not be negatively affected by the realignment process.
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“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,” said Gideon Jansen van Rensburg, CEO of SA Retail. “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.” The group’s operations include retail, rental and distribution and aftermarket parts divisions.
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