Dis-Chem memo “a bitter pill to swallow” for CEO

If Dis-Chem Chief Executive Ivan Saltzman had the chance, he would “definitely” change the wording of the memorandum he wrote instituting a “moratorium on the appointment of white individuals” that led to a wave of antisemitism. He was also lambasted as a ‘racist’.

In an exclusive interview with the SA Jewish Report this week, Saltzman said, “Its inadvertent release was of a rough draft, and doesn’t reflect our values. We regret its wording and tone. More importantly, we sincerely regret the offence and distress it caused to so many people including our staff and millions of loyal customers.

“The intention of the memo was to reinforce Dis-Chem’s commitment to accelerate transformation, and to continue to give preferential employment and greater opportunities to suitably qualified persons from designated previously disadvantaged groups, especially in the spheres of logistics, accounting, and nursing,” he says. “There’s simply no ban on employing and promoting white employees in any categories throughout the business.”

The memorandum, which was written in September and leaked in October, resulted in a wave of outrage from many sectors of South African society. In the midst of it all, the South African Jewish community was targeted.

“It was an internal communiqué intended for senior managers that was unfortunately leaked and misinterpreted,” Saltzman says. “The backlash is regrettable, but at the same time, we have received overwhelming support from many quarters. Dis-Chem has always strived to comply with the spirit of the Constitution and other applicable legislation. While it was unfortunate that the memo was misconstrued, the board and I stand by its intention of being inclusive of transformation.”

Regarding the antisemitic comments directed at him, Dis-Chem, and the South African Jewish community, he says, “There’s no place for racism and discrimination at any level. I will continue to support the South African Jewish Board of Jewish Deputies [SAJBD] in its fight against antisemitism.”

Some of the antisemitic vitriol directed at Saltzman and the community included comments like “These Jewish CEOs think they are untouchable”; “Is Saltzman a loxist? [Hatred for non-Jewish white people, and belief in Jewish supremacy]”; and “#KanyeWest you may be targeted for telling the truth, but the glaring #TRUTHWINS.” The last comment refers to antisemitic outbursts by rapper Kanye West in recent weeks. One user called for South Africans to “boycott all Jewish businesses”.

“The CEO and his family remind me of the Jewish people who sold out other Jewish people to the Nazis,” wrote another person. After the SAJBD criticised the antisemitic comments, another user wrote, “SA Jewish Board, the whites have made you very rich in the past … show backbone and support them.”

“A Jewish CEO … they had their knives in for white South Africans since the beginning,” was another comment on Twitter. “They’re the same deep-state Jewish ownership cabal that profits from government edict[s] via Jewish owned mainstream media and big pharma interests,” wrote someone on Facebook.

“Clearly, the controversial Dis-Chem memorandum has allowed the floodgates of Jew-hatred to be opened,” says Milton Shain, antisemitism expert and emeritus professor of history at the University of Cape Town. He notes that the comments claim Jews to be “outsiders, disloyal, and riddled with double standards”.

“It’s remarkable to see how the phantoms of antisemitism need little to be aroused,” Shain says. “At all times, they are merely below the surface. A simple plan, albeit controversial, is fastened onto by purveyors of hate.”

While the wave of hatred came from individual “trolls” online, “antisemitic comments are never harmless, especially if no one calls them out”, says Dr Günther Jikeli, the Erna B. Rosenfeld associate professor at the Institute for the Study of Contemporary Antisemitism at Indiana University. “They help to trivialise antisemitism at best and lead to radicalisation and violence at worst.”

SAJBD Chairperson Karen Milner agrees that “there’s never an excuse to express any form of hatred. To hold a community liable because you’re angry with something a community member has said is unacceptable.

“Outrage towards Mr Saltzman due to his being Jewish, in spite of having no relevance, was used to denigrate him and the entire Jewish community,” she says. “This manifested into blatant aggression towards Jewish South Africans, including comments referring to the ‘gassing of Jews’ and threats to boycott Jewish businesses. We condemn the vile social media posts. We’ll continue to monitor the comments and respond if and when required.”

Meanwhile, thought leaders have pointed out that the memorandum demonstrates the pressure that employment equity targets have on South African businesses, and that they are actually destroying jobs.

“The desperate letter penned by Saltzman underscores the panic engendered by pending changes to employment equity (EE) legislation,” says Democratic Alliance Shadow Minister of Employment and Labour, Dr Michael Cardo. “The Employment Equity Amendment Bill [EEB], which now sits on the president’s desk awaiting his signature, is a destructive exercise in social engineering. It’s a job-destroying jackhammer, and it will worsen South Africa’s economic woes.

“Critically, the Bill empowers the employment and labour minister to set numerical EE targets for any national economic sector, backed by hefty fines for non-compliance. The Bill facilitates the reintroduction of race quotas by another name. Inevitably, the new EE regime will deter investors, undermine economic growth, and jeopardise jobs.

“It’s against this backdrop that Saltzman’s letter must be understood,” Cardo says. “Businesses are in a tailspin at the thought of sacrificing 10% of their turnover on the altar of the ANC’s [African National Congress’s] racial madness. Fines of this magnitude would bankrupt many firms.”

In light of the Dis-Chem memo, the Institute of Race Relations (IRR) wrote to the presidency renewing its call on President Cyril Ramaphosa to stop the EEB from becoming law. “Dis-Chem’s ‘moratorium’ is a concrete manifestation of the inhuman, chilling effect that Nxesi and his department’s actions have had on a particular business,” says the IRR’s Gabriel Crouse. “The IRR has reason to believe that this effect is more widespread and underreported than a single case. More aggressive race law equals more pain for the poor.”

In addition, in a nationwide, demographically-representative survey commissioned by the IRR in 2020, 80% of all respondents of all races preferred job appointments to be made on merit.

Says Saltzman, “My vision, and that of the Dis-Chem board, is for a company that’s reflective of South Africa’s demographics. I also want to reiterate how Dis-Chem has contributed to transformation in other areas. These include health, education, upskilling, childcare, job opportunities, and nutrition. These are run by previously disadvantaged people, again leading to jobs.”