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LETTER FROM THE EDITOR

The grim racial stats behind the Dis-Chem furore

We can make like ostriches and hide our heads in the sand, but it will not take away the harsh impact of centuries of economic exclusion that led to the generational disadvantage of many black people.
The grim racial stats behind the Dis-Chem furore (Photo: iStock)

Dear DM168 readers,

When the CEO of Dis-Chem, Ivan Saltzman, wrote his memo explaining that the retail pharmacy giant was falling short on transformation targets, particularly in management, and therefore the hiring of white staff would be paused unless a strong case for their employment was made, our country’s centuries-old race divide reared its vicious head with white folk threatening to boycott Dis-Chem and black folk saying it is about time that a business leader took transformation seriously.

In this week’s DM168 newspaper our astute Business Maverick writer Ray Mahlaka has cut through the hysteria and explained the data and upcoming stringent amendments to equity legislation that lies behind Saltzman’s memo. I urge as many of you as possible to read every word of Mahlaka’s balanced, fact-based journalism on an issue that could easily plunge us into the emotionally charged morass of racial polarisation that will further divide us, when what we need is more understanding, more working together for our common good in a country teetering precariously on the brink of dysfunction, because of corruption, incompetence, poor education, petty power squabbles, a lack of foresight and politicians trapped in a prison of ideas that reached their sell-by dates long before the 20th century waved goodbye.

There is a very interesting graph in the latest Commission for Employment Equity annual report  which shows the demographics of top management in companies across South Africa. Of all senior management, those classified white constituted 63.2%, black African 17%, Indian/Asian 10.9% and coloured 5.9%.

Now contrast this with the latest population demographics of South Africa by Stats SA. Out of a total population of 60.6 million, black Africans constitute 81%, coloureds 8.8%, whites 7.7% and Indian/Asian 2.6%. If you look at this in perspective without any emotive attachment to one’s so-called designated race, it is clear that South Africa is a very long way from becoming an equal opportunity society for all who live here.

The data show that despite the Employment Equity Act signed in 1998, whites hold a greater proportion of senior management positions relative to their percentage proportion of the population than their black African counterparts. For only 17% of the 81% black African population to have the skills, experience and knowledge to reach senior management positions and lead companies, is just plain nuts. Equally nutty is the converse, that the minority 7.7% of the population holds the key to 63.2% of the economic kingdom. Only in South Africa.

The data come from the reality that privilege is generational. By privilege, I mean the basics that I believe are every human’s right: access to quality primary, secondary and tertiary education, a stable home environment that includes a solid roof over one’s head and good nutrition. Parents who have jobs that enable them to grow, learn, use their potential and provide for their families – this is the basic foundation the majority of black South Africans in our country are still deprived of.


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White privilege has lasted longer than any other racial group’s privilege in this country. The Nats made sure of this since 1948, when the Union of South Africa excluded black people from any kind of opportunity to grow by restricting them to semi-skilled labour and through the 1913 Native Lands Act, which limited two-thirds of the country’s population (black people) at the time  to 7.5% of the land while whites, making up one-fifth of the population then, were given 92.5% of the land.

We can make like ostriches and hide our heads in the sand, but it will not take away the harsh impact of centuries of economic exclusion that led to the generational disadvantage of many  black people.

The ANC spent the past three decades trying but failing to tackle this generational disadvantage. Perhaps the enormity of the task was so overwhelming that the greedy and myopic members of the ANC who took over from the thinkers, planners, managers, social democrats and humanists in the party, thought it easier for them and their families and friends to beg, borrow and steal their way up the economic ladder rather than address the challenge of creating opportunities for the people. Whatever the reasons might be, after close to three decades since apartheid ended, we still have a problem. A problem that is not going to be solved by denying that racial inequality exists or shouting platitudes of Radical Economic Transformation while feeding at the trough.

I believe in the genetic science as confirmed by several scientists including the American Society of Human Genetics, the largest professional organisation of scientists in the field, that the very idea of “race” is a lie. As they note: “The science of genetics demonstrates that humans cannot be divided into biologically distinct subcategories”; and it “challenges the traditional concept of different races of humans as biologically separate and distinct. This is validated by many decades of research.” In other words, “race itself is a social construct”, with no biological basis.

Racial concepts such as black African, coloured, white, other coloured, Indian and Asian were constructed in South Africa for the benefit of the descendants of European settlers over the inhabitants they found when they arrived here and the slaves they captured to work for them. The whole system of land appropriation, exclusion and oppression was based on a falsehood. We are living with the aftermath of this falsehood of white superiority and black inferiority which is why addressing the damaging effects of centuries of racism, today, does matter.

We need our economy to grow so that no one loses a job, black or white. We need more black skilled and qualified people who can fill in senior management and leadership positions on merit and ability. We need those 63% of white business leaders to follow Ivan Saltzman’s lead and do something to open more space and development for black junior, middle and senior managers on their teams.

We need good ideas and actions to break the cycle of poverty in generations of black families. We need more financial assistance and educational support for more black learners to access quality tertiary education, be it in the much-needed trades or professions. We need to stop shouting about racism and reverse racism and accept the fact that unless we do something to overturn racial inequality, actually many somethings, South Africa will always be no country for our young.

I’d love to hear your thoughts about the need for economic redress and ideas to tackle it. Write to me at heather@dailymaverick.co.za for your ideas to be published on our DM168 letters page.

Yours in defence of truth, fraternity and equality,

Heather

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R25. 

Comments (10)

John Strydom Oct 22, 2022, 01:28 PM

The situation is indeed shocking, and more can't be added to the many obvious suggestions offered by the commentators here. There is, however, in the quota solution a fatal flaw: equal opportunities are not the same as equal outcomes. We cannot want to jump over the education and training which have to PRECEDE equal outcomes. The quota system which leads to poorly qualified people appointed over more qualified people on the basis of any characteristic - race, disability, or whatever which has nothing to do with the job - is simply magical thinking. Go to any government office to confirm this.

Allan Wolman Wolman Oct 22, 2022, 01:53 PM

The common thread in all these comments is EDUCATION! After 30 years that the country still has over 3000 schools with pit latrines and just as many without running water while the ANC votes over R3bn for VIP security must speak volumes for the contempt the ANC holds for its people. That a former govt. Minister drives around in her Aston Martin and those teachers in rural schools will strike or sit in their well-appointed staff rooms filled with free tea and biscuits instead of teaching their pupils, must speak volumes. The ANC should hang their collective heads in shame!

Delia Jordaan Oct 22, 2022, 09:23 PM

Dear Heather I really don’t think you are being honest here about the real problems and this Dischem thing is just a side show to the real problems in SA. Mahlaka’s article states 86% of Dischem employees are black while according to you 81% of SA population is black. I understand that on management level blacks are severely under represented, but let’s be honest, what % of Dischem’s employees are in management positions. What does the graphs look like of the biggest employer in this country, the South African Goverment. How many minorities are employed at management level in government departments. I’m going to guess, very very few. And lower down even less. But this is not my point, and it shouldn’t be yours either. This whole Dischem thing is being used as a deflection from the real problems in this country. When last have you looked at our manufacturing figures. Factories around the country are closing at an alarming rate because there is no reliable power to manufacture stuff. Go calculate how many people are losing their jobs because of the energy crisis that is Eskom. Soon there will be no Dischem if we keep getting distracted by things pushed out there to divide us. A few more black managers in Dischem is not going to solve the hunger crises in the Eastern Cape, it’s not going to improve access to health care, it’s not going to rescue our crumbling water infrastructure. 30 years of social engineering through legislation has failed, time for a new plan.

Jon Quirk Oct 23, 2022, 06:26 AM

Raw statistics need to be interpreted very carefully. Fact number one - black statistics reveal a very bottom-heavy mass, with the median age being around 17. Think this through carefully - more than half black people are still at the studying phase of life. Now ponder on the white statistics, and in particular the startling statistic that, for most professions - a very disturbing preponderance are at, or near retirement. So whilst blacks are likely to be young, yet to acquire tertiary education, experience or skills, whites are at the other end of the scale, at or nearing retirement, highly experienced, qualified and skilled. Now which set of characteristics best fits the needs of a pharmacy? The questions that ought to be disturbing us are twofold - where the hell are we going to get the surgeons, specialists and other skills required in the healthcare field (and the same is true for accountants, engineers, lawyers etc) and how the hell are we going to find employment opportunities for the tsunami-like wave of sadly, preponderously under-skilled young black peoples that are going to hit the job market over the coming decades. What I do know is that we will at the very least need strong, well led organisations and structures to even stand a chance - they are not going to be many who are the self-starters and entrepreneurs who can stride out on their own. This is what ought to be keeping the ANC up at night, not worrying about the basically irrelevant which, in any event, the passing of time is resolving - and our economy will be in much worse shape when the ageing white population do retire.

William Stucke Oct 23, 2022, 02:38 PM

Well said, Jon.

Johan Buys Oct 24, 2022, 06:01 AM

100% Jon! Do social scientists seriously think that there are business owners that would rather appoint a useless non-black than a skilled black? It would be a short-lived business. he.

talfrynharris Oct 23, 2022, 09:30 AM

Does it make sense to state, correctly, that race is a social construct without scientific validity but at the same time imply that transformation should be measured by statistics based on those same "false" apartheid categories? Since South African democracy "transformation" and BEE have been Trojan horses for advancing the interests of a narrow elite, and deploying cadres. Thus many South Africans have lost confidence in BBBEE and employment equity. To address historically injustice would it not make more sense to measure generational advancement rather than continue to promote Apartheid categories? Why not favour people on the basis of the lower economic status of their parents and grandparents rather than their race? The other factor to consider is that civil service, SOE's and corporates have a role to play beyond just addressing historical injustice. They still have to supply services, water, electricity etc. Generational disadvantage not only means that catching up economically takes time, in terms of competence. Addressing historical disadvantage has to be pursued at a pace that does not compromise keeping SA productive and functional (e.g. ESKOM). In my observation the corporate leaders that are best advancing useful transformation are not those that are denying opportunities to certain South Africans, or appointing incompetent people. It is those that started mentoring talent twenty years ago. Nevertheless its not too late for a fair and balanced approach.

Carsten Rasch Oct 23, 2022, 09:36 AM

Racial quotas will make it worse. The reality is that, like sport, business will pick the winners, the ones with the best cv’s with experience and education. There is no doubt that black people have the same capacity and potential as any other race, but you cannot force this change with legislation and prejuduce. There is no shortcut. And the ANC has wasted 24 years flogging their dead racehorse. You’re right on one level - this needs to he approached with fresh ideas. And Nxesi is not going to be the one coming up with it. This is just another distraction technique, a detour around the failures of a useless government.

Jos Verschoor Oct 23, 2022, 01:54 PM

Dis-chem, well done!

Johan Buys Oct 23, 2022, 07:37 PM

Why is it that the private sector must try and fix the past? This government has arguably worsened the class divide through its education and training. And a class divide is what it was, not a race divide. Young rich non-white kids born since 1990, armed with a private school education and university qualification are highly sought after. The articles tend to infer a malice to the situation : the companies prefer hiring whites. I have to disagree. You would have to be really really dumb business owner if you employ whites because they are white rather than the best person you can find. Anyway, we have serious problems as a race-obsessed nation.

Matsobane Monama Oct 23, 2022, 10:00 PM

Thank you Heather for telling it like it is. The ANC is corrupt and incompetent period. Does this exonerate White people from the current state our country? answer NO. Stellenbosch Prof. Tereblanche in his book Lost in Transformation said by the time 1994 came SA problems were entrenched and unsolvable. If you look at most of the comments, except Virginia Crawford it's the mindset of same people day in day out, u can't change them. Virginia's comments are short spot on and understanding of how world works. The assumption here is that there are no educated capable Africans, well i am graduate of Wits. Dis-Chem must continue with the good work of building this nation.

Steve Stevens Oct 24, 2022, 09:38 AM

I agree - education and workplace training are key. New Zealand’s proposed smoking ban is a useful template for our EE approach. It recognises that older smokers are unlikely to quit overnight and will be applied annually such that in year 1 it is imposed on 18yr olds, year 2 on 18 and 19yr olds and so on until reaching critical mass. Granted, everyone is concerned that EE will populate private enterprises with the self same corrupt, clueless, economically illiterate incompetents that run our public services. Too late, they’re already there and always have been. It’s standard corporate - managers parachuted in, clueless as to real hands-on work, corruptly colluding to create little fiefdoms and shirking responsibility for eye-watering overspends. What KIND of education are we proposing? A poster here is adamant about the ‘right’ education ie. STEM subjects as opposed to ‘woke’ art, music etc. A rounded education provides the transferable skills needed in an economy that no longer guarantees jobs for life. Why shouldn’t a mine worker have a side-hustle as a musician to supplement his income? What about some ‘EQ’ alongside ‘IQ’ to recast outdated, damaging patriarchal customs where Black youths think nothing of raping women at a photo shoot or where pissing all over someone’s desk is excused away as a White student’s alcoholic ‘rite of passage’ and where even experienced and educated CEOs demonstrate a complete lack of empathy and tact when drafting memos.