Trade union federation Cosatu has called for what it describes as progressive, long-term solutions to protect workers in the highly competitive local motor industry as it struggles under the weight of cheap Chinese imports.
This follows the retrenchment of 86 employees by JSE-listed vehicle importer and retailer Motus due to industry pressures, while a further 579 workers are set to be affected by changes to remuneration and benefits effective January 1.
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 had been involved in “after the influx of Chinese brands caused severe pressure and competition in the motor retail industry”.
The job cuts come months after the National Union of Metalworkers of SA (Numsa) and employers in the motor industry signed a three-year wage deal in August 2025 for increases of 6% in the first year and 5% in the outer years. The inflation rate is hovering around 3.5%.
In November, Numsa secured yet another above-inflation wage agreement — this time with the seven original equipment manufacturers (OEMs) representing the country’s multibillion-rand automotive sector.
The three-year, across-the-board pay deal, expiring on June 30 2028, will see workers at Toyota Motors SA, Nissan, Isuzu, Ford, VW SA, BMW SA and Mercedes-Benz getting increases of 7% in July 2025 (backdated) and 5.5% in the outer years.
Numsa also managed to squeeze out a R12,500 one-off strike-free taxable gratuity, while the transport allowance will increase from R3,555.53 to R4,500.
The automotive giant, Motus, announced a restructuring process in terms of Section 189 of the Labour Relations Act on October 9 after reporting a 1% decline in revenue to R112.60bn in the year to end June. Its operating profit also dropped slightly to R5.48bn.
It attributed its reduced revenue to lower contributions from new vehicle sales of R3.33bn (6%), primarily in the group’s international operations.
Initially, up to 900 employees [were] facing remuneration and benefit realignment. Misa’s sustained engagement significantly reduced the impact.
— Martlé Keyter, Misa’s CEO for operations
Misa’s CEO for operations, Martlé Keyter, said: “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 [were] facing remuneration and benefit realignment. Misa’s sustained engagement significantly reduced the impact.”
Keytler said despite the efforts, the union remained “deeply concerned about proposed reductions of up to 30% cost to company, particularly where the calculation methodology remains unclear.
“Misa did not sign an agreement at the conclusion of the final facilitation session and continues to assess the reasonableness and fairness of the implemented changes. Our commitment remains firm: to support affected members and to pursue all lawful avenues to protect their interests during this challenging transition.”
Cosatu parliamentary co-ordinator Matthew Parks said South Africa, “with an already painfully high unemployment rate of 42.4% (on the broad definition), cannot afford to lose a single job nor condemn any family to absolute poverty and despair.
“With the rising cost of living and with most workers drowning in debt and having to support on average seven relatives, we cannot afford to see workers’ wages cut,” Parks said.
“The federation is extremely worried that Motus, a key motor vehicle retailer, may retrench hundreds and slash the wages and benefits of even more... We urge the employer to return to the negotiating table and engage with workers and their unions in good faith to find progressive solutions and fair alternatives to retrenchments and salary cuts.”
Cosatu sympathised with the industry’s concerns about the threat posed to local businesses and jobs by cheap Chinese imports. “What is needed are progressive long-term solutions that protect workers and their families. This needs to be engaged upon in the sectoral master plan between government, business and labour,” he said.
They should include measures to protect locally produced vehicles from cheap imports being dumped into South Africa, as well as the reskilling of at-risk workers.
This would be accompanied by engagements with Chinese, Indian and other car manufacturers to set up local factories to manufacture — not just assemble — new vehicles, alongside a review and enhancement of sectoral support and efforts to expand export opportunities.
