Chainstore Dis-Chem's transformation stance turns into political football

Pharmacy chainstore Dischem’s announcement that it would prioritise the employment of blacks and women in management roles has quickly degenerated into a political football.

ActionSA and the DA have criticised the chain, while the Black Business Council has backed the move and called for other listed companies to emulate it.

ActionSA president Herman Mashaba took to social media to lambast Dischem and blaming SA’s economic woes on “racial quotas”.

“As far as I am concerned, that letter by the CEO of Dischem was racial and divisive. Racial quotas contributed to our current economic woes. Hire South Africans on merit ad focus on investment in training where you experience weaknesses,” said Mashaba via Twitter.

ASA spokespersons did not respond to calls and messages asking for clarity on whether Mashaba’s views represent those of the party on employment equity.

Black Business Council CEO Kganki Matabane said they supported the decision taken by the CEO of Dischem adding they hoped it could be replicated in other JSE listed companies.

“We’re 28 years into democracy and things are not improving with JSE listed companies. More than 40% of CEOs in those companies are white and over 70% of promotions are for whites and entry level jobs are given to whites.

“Transformation will never happen if these steps aren’t taken. We need more people like him so the economy can reflect the demographics of South Africa,” Matabane said.

Asked what he thought Dischem’s motives for the announcement were, he said the CEO had probably done an analysis and realised those at Dischem continued hiring staff that looked like them and not giving opportunities to black people.

“His intervention is excellent and by linking performance based bonuses to the employment of blacks is a good thing because he realised nothing is moving and I hope other CEOs will learn from him. If dramatic action is not taken, then nothing will change. There is no regulation that forced him to take the decision,” he said.

The DA criticised Dischem for "kowtowing to the ANC’s diktats” and called for business leaders to “locate their backbone and begin to fight back, in the same way that CEOs and chairmen of listed companies defied influx control and job reservation in the 1970s and 1980s."

DA MP Michael Cardio said: “The Employment Equity Amendment Bill, which the DA opposed in Parliament and which now sits on the President’s desk awaiting his signature, is a damaging and destructive exercise in social engineering. It is a job-destroying jackhammer, and it will worsen South Africa’s economic woes.

“Critically, the Bill empowers the Minster of Employment and Labour to set numerical EE targets for any national economic sector after a vaguely defined process of consultation with the relevant sectors.”