Trade union Solidarity says it is keeping a close eye on Dis-Chem after the company allegedly retracted a controversial letter sent to senior management, alerting it about a moratorium on the appointment of whites.
Solidarity CEO Dirk Hermann shared on Twitter a letter reportedly sent by Dis-Chem CEO Ivan Saltzman.
It is dated September 19 and was addressed to all senior management.
In the letter, Saltzman told managers that after a recent review of the company's employment equity profile and BBEEE verification it was evident its transformation efforts were inadequate in spite of some inroads.
“Remember, we are growing at a fast rate and a few appointments other than white don't cut it. It's the ratio between black and white that counts. So when no suitable black candidate is found and a white is appointed, we need several blacks just to maintain the status quo, never mind moving forward,” reads the letter.
Saltzman said the company was placing a moratorium on the appointment of white individuals, including external appointments and internal promotions.
“No appointments are to be made on managerial level (senior, middle, junior) without my direct approval as CEO, which was asked for recently, for formal authorisation. The achievement of set employment equity targets will be incorporated into management's bonus structure and the allocation will be issued in due course. This will form a large part of your KPAs, probably a third. This is for real; each region has a base from which to work and a target,” the letter continues.
The CEO added that as Dis-Chem is a JSE-listed company, these harsh measures were necessary if it wanted to remain profitable and avoid a potential fine of 10% of turnover, which he said could cripple the business. “This is a real threat at this stage,” he said.
Hermann told TimesLIVE Solidarity contacted Dis-Chem after receiving numerous queries from members who work for the company.
“Dis-Chem confirmed that the letter was authentic, but said they have since retracted it. What we want to know is whether they have also retracted the policy cited in the letter,” Hermann said.
He said what Dis-Chem is trying to do is illegal and Solidarity would keep a close eye on developments.
“We are ready to challenge them legally if they continue with this policy that is discriminatory,” Hermann said.
Responding, Dis-Chem said it is aware of an internal memo on social media addressing employment equity targets in the group.
“Dis-Chem stands by the unequivocal imperative to continue its transformation journey. Equality and diversity are important to Dis-Chem and the group continues to make great strides in ensuring it maintains progress in this area. It is a proudly South African business which promotes inclusivity and representation of all South Africans in their capacity as key stakeholders,” the company said.
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Solidarity ready to take on Dis-Chem regarding 'discriminatory' employment policy
Image: Freddy Mavunda
Trade union Solidarity says it is keeping a close eye on Dis-Chem after the company allegedly retracted a controversial letter sent to senior management, alerting it about a moratorium on the appointment of whites.
Solidarity CEO Dirk Hermann shared on Twitter a letter reportedly sent by Dis-Chem CEO Ivan Saltzman.
It is dated September 19 and was addressed to all senior management.
In the letter, Saltzman told managers that after a recent review of the company's employment equity profile and BBEEE verification it was evident its transformation efforts were inadequate in spite of some inroads.
“Remember, we are growing at a fast rate and a few appointments other than white don't cut it. It's the ratio between black and white that counts. So when no suitable black candidate is found and a white is appointed, we need several blacks just to maintain the status quo, never mind moving forward,” reads the letter.
Saltzman said the company was placing a moratorium on the appointment of white individuals, including external appointments and internal promotions.
“No appointments are to be made on managerial level (senior, middle, junior) without my direct approval as CEO, which was asked for recently, for formal authorisation. The achievement of set employment equity targets will be incorporated into management's bonus structure and the allocation will be issued in due course. This will form a large part of your KPAs, probably a third. This is for real; each region has a base from which to work and a target,” the letter continues.
The CEO added that as Dis-Chem is a JSE-listed company, these harsh measures were necessary if it wanted to remain profitable and avoid a potential fine of 10% of turnover, which he said could cripple the business. “This is a real threat at this stage,” he said.
Hermann told TimesLIVE Solidarity contacted Dis-Chem after receiving numerous queries from members who work for the company.
“Dis-Chem confirmed that the letter was authentic, but said they have since retracted it. What we want to know is whether they have also retracted the policy cited in the letter,” Hermann said.
He said what Dis-Chem is trying to do is illegal and Solidarity would keep a close eye on developments.
“We are ready to challenge them legally if they continue with this policy that is discriminatory,” Hermann said.
Responding, Dis-Chem said it is aware of an internal memo on social media addressing employment equity targets in the group.
“Dis-Chem stands by the unequivocal imperative to continue its transformation journey. Equality and diversity are important to Dis-Chem and the group continues to make great strides in ensuring it maintains progress in this area. It is a proudly South African business which promotes inclusivity and representation of all South Africans in their capacity as key stakeholders,” the company said.
TimesLIVE
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