As Dis-Chem continues to evolve its strategy and strengthen its position as the leading integrated healthcare and retail business with a clear purpose to increase access and reduce the cost of healthcare across South Africa, it is important that its operating model, organisational structure, and ways of working remain aligned to 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. Aligned to this, the company has instituted a Section 189 process.
Chief Executive Officer Rui Morais says, “Without context, when people hear Section 189, they immediately default to large-scale retrenchments. 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. A key outcome of this process will be a new structure with clear lines of accountability, which also enables better integration with X, bigly labs, the Group’s innovation unit focused on strategic initiatives like Better Rewards.”
Just over 500 employees in certain head office departments (representing no more than 2.4% of Dis-Chem’s total workforce) have been invited to consult in the Section 189 process. This process does not affect retail stores and distribution centres.
Restructuring that may result in the retrenchment of employees is subject to a strict, mandatory process under the Labour Relations Act (Section 189) to ensure both procedural and substantive fairness. Dis-Chem is at the early stages of this regulated process which can take months to conclude.
“The unfortunate thing about a Section 189(3) Notice (the notice issued to affected employees) is that it requires very blunt and rigid language. 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,” Morais concludes.