Dis-Chem is embarking on a major corporate overhaul.
Image: Karen Sandison / Independent Newspapers
Dis-Chem is embarking on a major corporate overhaul that puts hundreds of administrative roles under review while simultaneously opening up new positions.
The prominent South African pharmacy group has formally initiated a Section 189 process, a mandatory consultation phase dictated by the country's Labour Relations Act for companies contemplating operational restructuring.
Upwards of 500 head office workers, who make up no more than 2.4 per cent of the corporation's overall staff, have been invited to join these discussions.
Shoppers and warehouse partners need not worry, however, as frontline employees stationed at retail branches and distribution hubs are entirely insulated from the corporate shake-up.
In a statement released on Friday, Chief Executive Officer Rui Morais was quick to temper public alarm over the legal filings.
“Without context, when people hear Section 189, they immediately default to large-scale retrenchments,” Morais explained in the release.
The legally required documentation often paints a harsher picture than reality, he noted, adding, “The unfortunate thing about a Section 189(3) Notice (the notice issued to affected employees) is that it requires very blunt and rigid language”.
Far from a simple downsizing measure, the strategic pivot will actually pad the payroll in specific areas.
The retailer also told The Citizen on Friday that this reorganisation is vital to keep its operating model aligned with future ambitions of making healthcare more accessible and affordable.
Morais clarified the company's real target in his public statement: “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 in areas of the business where we have historically underinvested”.
This new organisational blueprint is meant to establish transparent chains of accountability and foster closer collaboration with the group's innovation hub, known as X, Bigly Labs.
That particular unit drives forward-thinking corporate initiatives, such as the brand's Better Rewards program.
Executives emphasise that the legally regulated talks are merely in their infancy and will likely take several months to wrap up.
In the meantime, Friday's written statement pledged that the company "remains committed to meaningful consultation with those impacted by the process and exploring alternatives to retrenchment," focusing instead on reshaping the firm's architecture to secure long-term market growth.