Dis-Chem stands by leaked memo which placed moratorium on appointment of whites

A Dis-Chem Pharmacy store in Johannesburg. File Picture: Karen Sandison/African News Agency(ANA)

A Dis-Chem Pharmacy store in Johannesburg. File Picture: Karen Sandison/African News Agency(ANA)

Published Oct 15, 2022

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Johannesburg - Dis-Chem Pharmacies says it stands by an internal memo in which it placed a moratorium on the appointment of white staff in the company.

In a memo written by chief executive Ivan Saltzman, the company expressed concern after a recent review of its employment equity profile.

“It is evident that our organisation's efforts to effect transformation in terms of our employee profile, remain inadequate in spite of the Regionals making 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 white and black 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,” the CEO wrote.

According to the letter, as of September 19, 2022, the company placed a moratorium on the appointment of white individuals.

It also said no appointments are to be made on managerial level (senior, middle, junior) without the CEO’s direct approval.

It also said managers who reached their employment equity targets would be rewarded as part of their bonus structure and that attaining the target comprised of at least a third of their key performance areas.

“This is for real; each region has a base from which to work and a target.

“We are aware that there are recruitment and succession activities currently in progress.

“With Dis-Chem being a JSE listed company, these are harsh measures and necessary if we are to remain profitable and to avoid a potential fine of 10% of turnover which would cripple the business. This is a real threat at this stage,” the CEO said in the letter.

Dis-Chem told News24 that the memo still stood on Friday. They also said the company wanted to reiterate its commitment to the transformation journey.

Dis-Chem said it was committed to achieving equality and diversity and would continue to make strides in the transformation area.

Trade union Solidarity has reacted angrily, sending a legal letter to Dis-Chem. It also claimed Dis-Chem had withdrawn the letter.

“Ivan Saltzman, CEO of Dis-Chem, wrote a harsh racial letter to management. There are too many whites and no whites may be appointed or promoted. Solidarity wrote a legal letter. Letter is genuine, but they retracted. How on earth did such a letter get written in the first place?

“It's tragic. Dis-Chem doesn't want any more friendly white pharmacists. Not because they are poor pharmacists, but because they are white. Not about what they do, but about how they look.”

— Dirk Hermann (@SolidariDirk) October 13, 2022