UNILATERAL SALARY AND BENEFIT CUTS AT MOTUS RETAIL ARE UNLAWFUL AND UNJUSTIFIED

UNILATERAL SALARY AND BENEFIT CUTS AT MOTUS RETAIL ARE UNLAWFUL AND UNJUSTIFIED

20 January 2026

The Federation of Unions of South Africa (FEDUSA) expresses its full and unequivocal support for its affiliate, the Motor Industry Staff Association (MISA) following its declaration of a dispute against Motus Retail for the unilateral alteration of terms and conditions of employment affecting more than 500 workers.

FEDUSA notes with serious concern that Motus Retail has informed affected MISA members of its intention to implement salary and benefit cuts of up to 30 percent, including the removal of company vehicles, allowances, and incentives, without agreement and following consultations that reached a deadlock. Such actions represent a clear violation of fundamental labour law principles and established collective bargaining norms.

In terms of Section 64 of the Labour Relations Act, unilateral changes to terms and conditions of employment are prohibited while a dispute remains unresolved. FEDUSA therefore supports MISA’s position that Motus Retail may not lawfully proceed with these changes and endorses the union’s intention to seek urgent relief from the Johannesburg High Court should the employer persist.

The Federation is further alarmed that these proposed cuts follow the retrenchment of 86 employees effective 1 January 2026, after Motus Retail initiated a restructuring process in terms of Section 189. This sequence of events raises serious questions about the employer’s commitment to fair labour practices and meaningful alternatives to job and income losses.

FEDUSA finds it deeply troubling that these measures are being pursued within a corporate group that remains profitable. The Motus Group, a JSE-listed entity, reported revenue of R112.6 billion and operating profit of R5.48 billion for the year ended 30 June, reflecting only a marginal decline. Workers should not be compelled to absorb the cost of strategic or operational challenges when the broader group continues to generate substantial value.

FEDUSA reiterates that workers must not be treated as a balancing item in corporate restructuring exercises. Decisions of this nature have profound implications for livelihoods, household stability, and dignity at work. Any restructuring or cost-containment measures must be lawful, consultative, and guided by fairness, transparency, and social responsibility.

The Federation commends MISA for acting decisively to protect its members and affirms its solidarity with all affected workers. FEDUSA will continue to support its affiliate in pursuing all lawful avenues to defend jobs, incomes, and negotiated conditions of employment.

END.