Trade union Solidarity says it is keeping an eye on Dis-Chem after the company allegedly retracted a controversial letter sent to senior management that announced a moratorium on the appointment of whites.

Solidarity CEO Dirk Hermann shared on Twitter the letter by Dis-Chem CEO Ivan Saltzman in which he said that after a recent review of the company's employment equity profile and BBEEE verification it was evident its transformation efforts were inadequate in spite of some inroads.

Saltzman said the company was placing a moratorium on the appointment of white individuals, including external appointments and internal promotions.

‘No appointments are to be made on managerial level (senior, middle, junior) without my direct approval as CEO…,’ the letter continues.

The CEO added that as Dis-Chem is a JSE-listed company, these harsh measures were necessary if it wanted to remain profitable and avoid a potential fine of 10% of turnover, which he said could cripple the business.

‘This is a real threat at this stage,’ he said.

Hermann reportedly told TimesLIVE that Solidarity contacted Dis-Chem after receiving numerous queries from members who work for the company.

‘Dis-Chem confirmed that the letter was authentic, but said they have since retracted it. What we want to know is whether they have also retracted the policy cited in the letter,’ Hermann said.

He said what Dis-Chem is trying to do is illegal and Solidarity would keep a close eye on developments.

‘We are ready to challenge them legally if they continue with this policy that is discriminatory,’ Hermann said.

Responding, the company said: ‘Dis-Chem stands by the unequivocal imperative to continue its transformation journey. Equality and diversity are important to Dis-Chem and the group continues to make great strides in ensuring it maintains progress in this area. It is a proudly South African business which promotes inclusivity and representation of all South Africans in their capacity as key stakeholders...’

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