Automotive retail giant Motus has retrenched 86 employees, and 579 will be affected by remuneration and benefit changes in the new year. The Motor Industry Staff Association (Misa), the majority trade union in the retail motor industry representing more than 75,000 members, said this was one of the biggest retrenchments it was involved in this year after the influx of Chinese brands caused severe pressure and competition in the motor retail industry. Chinese brands offer feature-rich, technologically advanced vehicles at significantly lower prices than established European, Japanese and Korean competitors, appealing to cash-strapped consumers.
According to Misa, Motus announced a restructuring process in terms of the Labour Relations Act on October 9 after reporting a 1% decline in revenue to R112.6bn in the year ended June 30. Its operating profit also dropped slightly to R5.48bn. “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 faced remuneration and benefit realignment. Misa’s sustained engagement significantly reduced the impact,” said Misa CEO Martlé Keyter. “Despite the efforts, Misa remains deeply concerned about proposed reductions of up to 30% of the cost to company, particularly where the calculation methodology remains unclear.” Motus, which employs more than 13,000 people in South Africa, sells 36 car brands across its local dealerships and has exclusive partnerships to distribute Tata, Renault, Kia, Hyundai and Mitsubishi.
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It also rents vehicles through Europcar and Tempest and provides service and maintenance. The South African automotive group also has a presence in the UK and Australia.
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