Dis-Chem

Dis-Chem co-founder Ivan Saltzman will step down as CEO at the end of June 2023 after 45 years at the helm. Image via: Archive

Dis-Chem sales affected by leaked policy on hiring whites

Dis-Chem has confirmed that its sales were negatively impacted after its moratorium on white employees was leaked.

Dis-Chem

Dis-Chem co-founder Ivan Saltzman will step down as CEO at the end of June 2023 after 45 years at the helm. Image via: Archive

Sales of pharmaceutical retailer, Dis-Chem have reportedly plummeted following uproar over its controversial moratorium that leaked. The document stated that white South Africans would be blocked from appointments or promotions in the company.

Dis-Chem Chief Financial Officer Rui Morais has confirmed that sales declined following the publication of Saltzman’s letter and the social media storm that followed after as many called for the company to be boycotted.

DIS-CHEM SALES DECLINE AFTER ‘NO WHITES’ POLICY 

Dis-Chem became a hot topic after the policy on hiring whites was leaked.

In a letter to senior management dated 19 September, CEO Ivan Saltzman announced the moratorium, which includes external appointments and internal promotions.

Saltzman said it is the ratio between white and black that counts. So, when no suitable black candidate is found, and a white is appointed, the company needs several blacks just to maintain the status quo, never mind moving forward.

“Dis-Chem is a listed group and 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,” he said.

After initially standing by the memo the company later said it regretted the wording and tone of the memo, adding it had been erroneously widely shared.

Saltzman told the media that the policy was to achieve set employment equity targets and would be incorporated into management’s bonus structure.

Trade union Solidarity demanded confirmation from the group that the policy itself was also no longer in effect. It gave Dis-Chem until Friday, 21 October, to confirm this or face legal action.

Speaking to Daily Investor, Morais said they saw their growth trend reverse from 17 October to 24 October when looking at daily sales numbers following the leaking of the memo. 

“That trend has now reversed back to normal following the pay cycle on 25 October. It did have a short-term sales impact, and we are happy that we have clarified our position,” he said.

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