MISA condemns Motus' abuse of Section 189 retrenchment process amid strong financial performance
MISA, the Motor Industry Staff Association, is shocked that the Motus Group has the audacity to boast about how it benefited from the strongest vehicle sales environment in a decade while continuing to justify a retrenchment process that has caused significant hardship to 67 former employees and their families.
This comes after Ockert Janse van Rensburg, Chief Executive Officer of Motus, forecasted stronger earnings for its financial year ending in June. Motus expects South Africa’s new vehicle sales to reach between 610 000 and 640 000 units in 2026, reporting improved operational performance and favourable market conditions.
MISA maintains that the retrenchments implemented by Motus in January was neither necessary or the last resort, as required by the spirit and intent when entering Section 189 process according to the Labour Relations Act (LRA). Prior to the retrenchments, the Union pointed out that new vehicle sales in South Africa achieved pre-Covid records since September 2025. The National Association of Automobiles Manufacturers of South Africa (Naamsa) reported that South Africa's new vehicle market recorded its strongest monthly performance since 2013, with May 2026 sales rising 12.8% year on year to 51,071 units. This surge reflects renewed confidence in the automotive sector, driven by passenger car sales climbing 16.3% and steady growth across commercial vehicles.
"Throughout the Section 189 consultation process, MISA proposed alternatives to the dismissal of employees because of the local market’s positive performance. MISA and Motus could not reach an agreement because the Employer consulted in bad faith, set on cutting its so-called bloated wage bill. Motus abused Section 189 and refused to explore reasonable alternatives to avoid retrenchments. MISA remains convinced that the job losses at Motus could have been avoided through meaningful consultation, genuine engagement and the implementation of proposed alternatives," says Martlé Keyter, MISA's Chief Executive Officer: Operations.
South Africa is facing one of the highest unemployment rates in the world at 32.7% which translates to over 8.1 million officially unemployed individuals. Every job lost places additional pressure on families, communities and an already strained economy. Against this backdrop, it is deeply troubling that Motus, a JSE-listed company valued at R17 billion and South Africa's largest vehicle dealership group, would pursue retrenchments while simultaneously reporting stronger trading conditions and improved performance. Janse van Rensburg confirmed that Motus would continue to implement its unilateral changes in the salary benefit structure of affected employees in July.
“MISA believes that Section 189 was never intended to become a mechanism for employers to increase profitability at the expense of workers. The purpose of legislation is to provide a fair process when retrenchments are genuinely unavoidable, not to facilitate workforce reductions simply because they may improve margins or shareholder returns. The Union has consistently challenged the Motus retrenchment process and remains firmly of the view that employees were not afforded the full protection as intended by the Labour Relations Act.”
The parties had been engaged in Labour Court proceedings for months. In February, the Labour Court interdicted Motus from unilaterally changing the terms and conditions of employment of 232 members of MISA, but dismissed another application by the Union to interdict Motus from consulting directly with its members during a retrenchment process and from pursuing the consultation process before issuing a fresh notice in terms of Section 189 of the LRA.
MISA confirms that various matters arising from the retrenchment process remain the subject of ongoing litigation in the Labour Court. "MISA will continue to defend every affected member. Workers are not disposable assets that can be sacrificed whenever a company seeks greater efficiencies or increased profits. They are the people who built these businesses and contributed to their success," says Keyter.
Issued by Sonja Carstens, Manager: Media and Communication, on behalf of MISA.
For media enquiries contact Phakamile Hlubi-Majola, MISA Spokesperson, on 083 367 6417.
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