Following the announcement by South African liquor company DGB that its executive management team had agreed to a 25% reduction in salary for three months, DGB said on Friday (17 April) that the accrued monies from this pay-cut will be donated to the Solidarity Fund set-up by President Cyril Ramaphosa to fight COVID-19.
The Solidarity Fund was announced by President Ramaphosa on 22 March, urging South African businesses, organisations and individuals, and members of the international community to contribute towards the country’s efforts to combat the spread of the virus. The fund will also aid in tracking the spread and care for those who are ill. It will also support those whose lives are disrupted.
Tim Hutchinson, CEO of DGB who has personally taken a reduction of 50% in salary for donation to Solidarity Fund, says he and the 16 members of DGB’s executive management unilaterally agreed on the salary-cuts for April, May and June, as well as concurring that the respective amounts be donated to the Solidarity Fund.
“As a company dependent on the sale of premium wine, spirits and beer, DGB is obviously feeling the enormous impact of the shutting-down of liquor sales in South Africa, the obstacles to exporting our product and the general catastrophic effect COVID-19 is having on the economy,” says Hutchinson.
“It is become more apparent by the day that this crisis not going to see a short-term solution. As a leading player in the South African economy we are committed to initiatives aimed at tackling the effects of this virus and the spreading thereof at the primary source. The Solidarity Fund is proving to be one of the most committed, efficient and successful vehicles in helping those at the most vulnerable ends of society by testing, treating and supporting. For us, it is the obvious recipient for the financial sacrifices by our senior staff, for which I am personally tremendously grateful.”
Hutchinson also said he is proud to state that DGB’s international sales executives based around the world have on a voluntary basis offered a 20% salary sacrifice for this three month period. “I am touched by this personal sacrifice and it is fantastic that we have people of this caliber in our business who care about the welfare of the business and our work force. They will certainly help take the company to new heights once this pandemic is behind us.”