Dis-Chem sorry, but only preparing itself for new BEE laws

Dis-Chem might have withdrawn the letter penned by chief executive Ivan Saltzman, ordering a moratorium on the employment of white people … but it did not change its policy.

The company confirmed it would still no longer be employing whites, but apologised for Saltzman’s “poorly worded” letter.

“The original letter to staff was withdrawn as it was poorly worded, but its intention remains, and Dis-Chem stands by the unequivocal imperative to continue its transformation journey,” a statement read.

“Equality and diversity are important to Dis-Chem and the group continues to make great strides in ensuring that 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.”

ALSO READ: Dis-Chem apologises for ‘wording’ and ‘tone’ of letter on ‘no whites’ rule

Saltzman’s controversial internal memo referred to an apparent lack of diversity in its workplace, noting that for every white the company employed, it would have to employ several blacks to keep its equity numbers tallied up.

‘Steps have been put in place’

Dis-Chem said: “We acknowledge that it did not reflect our values. Its release did not follow our correct internal vetting processes and steps have been put in place to ensure that, going forward, relevant checks and balances are thoroughly duly performed.

“We deeply value all our employees and appreciate their contribution to Dis-Chem. We stand by the unequivocal imperative to continue our transformation journey. Equality, diversity and inclusivity are important throughout Dis-Chem and we continue to make great strides in ensuring we maintain progress in this area.”

The letter sparked outrage last weekend with consumers expressing both disdain and elation at the stated policy.

ALSO READ: Dis-Chem’s ‘no whites’ rule: Even black SA not sure how to feel

Dis-Chem said: “We sincerely regret the offence and distress it caused to so many people…”

Online consumer behaviour saw a massive spike in searches for Dis-Chem’s competitors, suggesting a possible boycott.

The Democratic Alliance’s shadow minister of employment and labour Dr Michael Cardo suggested Dis-Chem may be readying itself for the draconian employment equity laws awaiting enactment by the president. It will give government sweeping powers.

Cardo said: “The Employment Equity Amendment Bill empowers the minister of employment and labour to set numerical employment equity targets for any national economic sector after a vaguely defined process of consultation with the relevant sectors.

“The minister will be able to set targets for different occupational levels, subsectors or regions, backed by hefty fines for noncompliance. The Bill facilitates the reintroduction of race quotas by another name.”

Cardo suggested the new regime would deter investors, undermine economic growth and jeopardise jobs at a time when many businesses are on their knees.

“It is against this backdrop that Saltzman’s letter must be understood. Businesses are in a tailspin at the thought of sacrificing 10% of their turnover on the altar of the ANC’s racial madness. Fines of this magnitude would bankrupt many firms.”

The company’s stock traded at its second-lowest level in six months yesterday. Digital analyst Carmen Murray said Dis-Chem was quick to respond to consumers about products and services yesterday, but mum on its no-whites policy.

“What is most concerning is Dis-Chem’s response to this incident on its social media channels. They are ghosting all the negative comments and by the time they respond, it will be too late or lacklustre to save their brand.”

ALSO READ: Fury over Dis-Chem letter on hiring of whites

She said that this was a sure way to erode trust in the brand.

“Not responding and pretending it does not exist is reminiscent of public relations decades ago. They would have said ‘don’t give it oxygen’,” Murry said.

None of the executive management team was available for interviews yesterday. Murray said withdrawing the letter via a statement “means nothing”.

– news@citizen.co.za