TDG considers pay cuts
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• Wage restraint is under consideration at Transport Development Group's £106m-turnover transport division as the group plans ways of improving its financial performance.
The review of wages in the division is being conducted by assistant divisional managing director David Williams. Pay freezes and even pay cuts are not ruled out, especially if TDG's wage costs are above those of its competitors. The transport division employs almost 2,500 staff.
"We are addressing where our labour costs are very high or out of step with competitors," says Williams.
A rationalisation programme is intended to increase the specialisation of the companies and to double the division's profits from last year's £4.7m.
From 1 July the transport division will comprise seven companies: Inter-City Transport, Link man Tankers, Nexus Logistics, McKelvie, Stirland, W&J Riding and the consolidated whisky transport company McPherson.
John Russell (Grangemouth) and Thomas Smith will be merged into the remaining seven companies but few, if any, redundancies are expected. Inter-City has won contracts worth £4m a year which will cushion the changes.
The long-term future looks less certain for Preston-based general haulier W&J Riding — its bulk powder business will be transferred eventually to Nexus, leaving it with a £1.3m general haulage contract but transport division managing director Duncan Martin says he will look favourably on the £7m-turnover company: 'Traditionally it has been successful — even through the recession — and one must have a heart."
El Linkman Tankers says it is talking to two major retailers over delivery of fuels to superstore forecourts. The company sees fuel distribution as its biggest growth area: it earns Um of its £33m turnover from the petroleum industry.