Dis-Chem announces retrenchments in South Africa
South African pharmacy giant Dis-Chem has confirmed that it has initiated a Section 189 process, inviting over 500 employees to participate.
In a statement released on Friday, April 24, Dis-Chem said the move is part of its “strategic evolution”.
The company said that, to strengthen its operations, its operating model, organisational structure, and working methods must align with its future ambitions.
“To support growth and competitiveness in a dynamic market, it is reviewing its organisational framework to optimise the right structures to ensure continued brand progress,” Dis-Chem said.
Therefore, in line with this review, the company has instituted a Section 189 process.
New Dis-Chem CEO Rui Morais described the retrenchment notice as necessary to enable new jobs.
“Without context, when people hear Section 189, they immediately default to large-scale retrenchments,” he said.
“The process we’re undertaking is designed to enable a new head office operating model, which will see an additional 200 jobs added to key head office departments.”
This is in areas of the business where the group has historically underinvested, he said.
Morais added that a key outcome of this process will be a new structure with clear lines of accountability. This will also facilitate better integration with X, Bigly Labs.
X, Bigly Labs is Dis-Chem’s innovation unit that focuses on strategic initiatives, such as the Better Rewards programme.
“This process does not affect retail stores and distribution centres,” the company said.
Despite the context, over 500 employees from certain head office departments, which represent less than 2.4% of the company’s total workforce, will participate in the Section 189 consultation process.
“The unfortunate thing about a Section 189(3) Notice – the notice issued to affected employees – is that it requires very blunt and rigid language,” Morais said.
“Dis-Chem remains committed to meaningful consultation with those impacted by the process and exploring alternatives to retrenchment.”
“The process we’re undertaking is designed to ensure that Dis-Chem is optimally structured for future growth and success, aligned to its strategic priorities.”
Dis-Chem said it is still in the early stages of the Section 189 process, which may take months to complete.
Loading ...