It seems like the nation’s second-largest pharmaceutical company is off to another bad start this week.
Dis-Chem is facing a lawsuit by the trade union Solidarity due to racial discrimination embedded in its hiring policy.
Also read: A letter by Dischem CEO sparks employment equity controversy
The leaked memo by CEO Ivan Saltzman said, “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 memo was later retracted by the board.
Also read: Dis-Chem controversy: board releases statement of acknowledgement
Solidarity requested Dis-Chem to confirm that it has desisted from the policy that goes against South Africa’s Employment Equity Act.
The deadline given by Solidarity was Friday 21 October and as far as Solidarity is concerned, “Dis-Chem has ignored this deadline.”
According to BussinessTech, Solidarity’s view is that ” Dis-Chem CEO’s stance does not appear to be against the letter of the law, his position is against the spirit of employment equity and affirmative action and could amount to ‘malicious compliance’ with the laws.”
EEA encourages equal opportunities by eliminating unfair discrimination in any employment policy or practice – but preferential measures taken by a designated employer should exclude quotas.
The letter by Saltzman deals with EE as a “subject for chasing numbers instead of fully embracing the spirit and the letter of law,” thereby making Dis-chem liable for malicious compliance.
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Picture: Twitter