South African pharmacy giant Dis-Chem has confirmed that it has initiated a Section 189 process, inviting over 500 employees to participate.<\/p>\n\n\n\n
In a statement released on Friday, April 24, Dis-Chem said the move is part of its “strategic evolution”.<\/p>\n\n\n\n
The company said that, to strengthen its operations, its operating model, organisational structure, and working methods must align with its future ambitions.<\/p>\n\n\n\n
\u201cTo support growth and competitiveness in a dynamic market, it is reviewing its organisational framework to optimise the right structures to ensure continued brand progress,\u201d Dis-Chem said. <\/p>\n\n\n\n
Therefore, in line with this review, the company has instituted a Section 189 process.<\/p>\n\n\n\n
New Dis-Chem CEO Rui Morais described the retrenchment notice as necessary to enable new jobs.<\/p>\n\n\n\n
“Without context, when people hear Section 189, they immediately default to large-scale retrenchments,\u201d he said.<\/p>\n\n\n\n
\u201cThe process we\u2019re undertaking is designed to enable a new head office operating model, which will see an additional 200 jobs added to key head office departments.”<\/p>\n\n\n\n
This is in areas of the business where the group has historically underinvested, he said.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
X, Bigly Labs is Dis-Chem’s innovation unit that focuses on strategic initiatives, such as the Better Rewards programme.<\/p>\n\n\n\n
\u201cThis process does not affect retail stores and distribution centres,\u201d the company said.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
\u201cThe unfortunate thing about a Section 189(3) Notice \u2013 the notice issued to affected employees \u2013 is that it requires very blunt and rigid language,\u201d Morais said. <\/p>\n\n\n\n
\u201cDis-Chem remains committed to meaningful consultation with those impacted by the process and exploring alternatives to retrenchment.\u201d <\/p>\n\n\n\n
\u201cThe process we\u2019re undertaking is designed to ensure that Dis-Chem is optimally structured for future growth and success, aligned to its strategic priorities.\u201d<\/p>\n\n\n\n
Dis-Chem said it is still in the early stages of the Section 189 process, which may take months to complete.<\/p>\n","protected":false},"excerpt":{"rendered":"
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