The Commission for Employment Equity, a statutory body under the Department of Labour, has slammed the CEO of Dis-Chem Pharmacies’ recent moratorium on the appointment and promotion of white employees as “malicious compliance” with employment equity provisions.
Earlier this week, an internal memorandum written by the JSE-listed pharmaceutical giant’s CEO, Ivan Saltzman, placing a moratorium on the hiring of white staff, was leaked on social media.
The Dis-Chem memorandum has polarised and further racially divided society, causing much debate on whether Saltzman’s actions were just or not in terms of transformation in the workplace.
Chairperson of the Commission for Employment Equity Tabea Kabinde yesterday (Thurs) said Saltzman had applied the law according to Section 15(1) of the Employment Equity Act (EEA) which designated employers to adopt affirmative action measures.
Kabinde also said that section 21 of the EEA placed accountability and the responsibility to implement employment equity and transform the workplace in the hands of the CEO.
As a result, Kabinde said Saltzman’s action up to this point were compliant.
However, Kabinde said while Saltzman was dealing with compliance in terms of demographic representation and correctly applied the law, the memorandum did not position employment equity and transformation as a business imperative embedded in the business strategy.
“It, therefore, may be perceived to be malicious compliance,” Kabinde said.
“The memorandum dealt with EE as a subject for chasing numbers instead of fully embracing the spirit and the letter of law.”
As the company’s accounting officer, Saltzman put a moratorium on the appointment of white individuals, including external appointments and internal promotions.
He said that following a recent review of both the EE profile in the organisation and the recent BBBEE verification process, it was evident that the organisation’s efforts to effect transformation in terms of its employee profile remained inadequate.
Saltzman explained that when a white individual is appointed, they need several blacks to maintain the status quo.
“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,” Saltzman said.
“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.”
However, Kabinde commended the Dis-Chem Board after it responded to the backlash the company faced earlier this week, including threats of legal action.
“The response by the board on the other hand seems to align EE to the values and ethos of the organisation, which is critical,” Kabinde said.
Dis-Chem board expressed regret for the wording and tone of the internal memo, saying that it did not reflect the company’s values.
“Equality, diversity and inclusivity are important throughout Dis-Chem, and we continue to make great strides in ensuring that we maintain progress in this area,” it said.
“We have always been cognisant of the imperative to comply with all legislation, including employment equity, on our journey to meet transformation targets, and with a priority of employment on merit, based on our view of giving employment preference to previously disadvantaged communities.”
BUSINESS REPORT