Transcend weighs in on the Dis-Chem saga

Dis-Chem’s position relating to Employment Equity is not unique. It is important that businesses are prepared and don’t find themselves in a similar position. Many businesses, however, are behind the curve when it comes to meeting diversity, inclusion and equity targets included in South Africa’s BEE legislation.

If tabled, the proposed Employment Equity Amendment Bill could well mean that the Department of Labour has the right to inspect a business’s employment equity targets. Those with a plan in place will be ahead of the curve.

There is no question that Dis-Chem’s leaked letter announcing a moratorium on the appointment of any white candidates was insensitively worded. However, as poorly as the letter was written, many of Dis-Chem CEO Ivan Saltzman’s comments are factually correct.

Saltzman is also correct when he says that failing to meet racial targets may soon trigger “a potential fine of 10% of turnover which would cripple the business. This is a real threat at this stage. But so is alienating your employees and customers through a poorly crafted plan and response.

In order to be prepared, businesses need to instead invest in a well-thought-out diversity, inclusion, and equity plan which is sensitive to all stakeholders and which considers the realities of transformation.

Once a plan is in place, a communication strategy needs to be mapped to disseminate the plan to the business’s stakeholders, including details regarding how the business plans to meet its Employment Equity targets.

Transcend, a leader in the BEE space has helped numerous businesses prepare a diversity, inclusion, and Employment Equity plan. With more than 15 years of experience as a trusted advisor to multinationals and South African corporates, we are ideally positioned to help your business identify and implement optimal and sustainable transformation solutions.

Our experienced and highly knowledgeable team of professionals drives sustainable transformation in alignment with current BEE legislation.