The Motor Industry Staff Association (Misa) on Thursday criticised the 32 percent salary increase given to McCarthy chief executive officer Brand Pretorius while retrenchments in the industry are underway.

"Misa was involved in retrenchment consultations involving McCarthy employees on Monday," its chief executive officer Dana de Villiers said in a statement.

"However, the following day it came to light at the Bidvest AGM that Pretorius was awarded and accepted a 32 percent salary increase, up from R2.5-million to R3.37-million for the 2009 year."

McCarthy, which deals in used cars, is a division of Bidvest.

De Villiers said Pretorius' salary hike was far above that of his employees' increase of 7.5 percent.

"Why did we not hear the normal outcry by employers and economists on this issue, as they normally do on the so-called negative impact trade unions have on the economy with excessive wage demands and increases?" De Villiers asked.

She said that 295 McCarthy employees had been retrenched in the past three years with more to follow.

She argued that Pretorius' increase could keep 10 to 15 employees on the payroll.

Bidvest could not be immediately reached for comment.

Sapa

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