One of the year’s most significant interventions by the Motor Industry Staff Association (MISA) unfolded as automotive retail giant Motus undertook a major restructuring process. This move comes amid increasing market competition, notably from the growing influx of Chinese automotive brands, which is pressuring local operators’ profitability.

The restructuring was executed under Section 189 of South Africa’s Labour Relations Act. This follows Motus’s financial results for the year ending June 30, which reported a 1% decline in revenue to R112.60 billion and a slight drop in operating profit to R5.48 billion. A key contributing factor was a 6% reduction (R3.33 billion) in contributions from new vehicle sales, particularly within its international operations.

Martlé Keyter, MISA’s Chief Executive Officer of Operations, stated that the union actively engaged to protect employees and resist unjust cuts to long-standing benefits. “Initially, up to 900 employees faced potential adjustments to their remuneration and benefits. Through direct engagement, MISA significantly reduced the number of individuals directly affected,” Keyter explained.

Despite these efforts, Keyter raised serious concerns regarding proposed reductions of up to 30% in employee cost-to-company (CTC) packages, criticizing the lack of clarity in the calculation methods. As a result, MISA did not sign an agreement at the conclusion of the final facilitation session. The union continues to evaluate the reasonableness and fairness of the implemented changes.

This restructuring highlights the severe economic pressures within South Africa’s automotiveretail sector, intensified by global competitive shifts. It also underscores the critical role of trade unions like MISA in negotiating fair outcomes and advocating for employees during corporate restructuring and market volatility.