Motus pushes back against retrenchment claims

Motus Holdings has denied that its division, SA Vehicle Retail (SA Retail), has taken unilateral action to retrench employees, as claimed by the Motor Industries Staff Association (Misa) and other unions in the industry.

It said the matter  before the Labour Court followed an application brought by Misa to interdict SA Retail from proceeding with its restructuring plan.

The group said the matter concerned what it called “a realignment process of incentive structures and company car benefits for administrative and support-related employees as an alternative to forced retrenchments”.

Motus rejects union claims of unilateral retrenchments

This week, the Labour Court in Johannesburg reserved judgment after hearing arguments from both parties.

Motus said while the group continues to perform across multiple business segments, SA Retail has faced specific challenges within the highly competitive automotive retail environment.

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The realignment is focused exclusively on SA Retail and should not be interpreted as reflective of the performance or stability of Motus as a whole.

“As part of this process, SA Retail is aligning certain operational structures and administrative and support staff benefits with prevailing industry benchmarks.

“These measures are aimed at improving efficiency, strengthening sustainability, and ensuring the long-term resilience of the SA Retail business,” Motus said.

No unilateral changes implemented – SA Retail

SA Retail has reiterated that no unilateral changes have been implemented to employees’ terms and conditions of employment. All affected employees were paid their full salaries and incentives on 23 January.

“As part of an ongoing engagement process, SA Retail has put forward a revised proposal as an alternative to forced retrenchments, following an extensive Section 189 consultation process facilitated by the Commission for Conciliation, Mediation and Arbitration – contrary to claims of retaliation or coercion,” a company statement said.

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“SA Retail has continued to engage in good faith with unions and employees, to explore all reasonable alternatives to job losses.”

The revised offer has not been accepted by Misa.

Misa claimed to have obtained victory after securing a court interdict to halt salary cuts and retrenchments of 273 employees at SA Vehicle Retail.

Unions welcome Misa’s decision

Both Cosatu, and the Federation of Unions of South Africa, to which Misa is affiliated, welcomed Misa’s decision to prevent the retrenchments. Fedusa said it fully supports Misa in lodging court action against Motus.

Cosatu also lashed out at Motus for offering its CEO a high salary while it was retrenching staff.

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