City Link is not cutting wage bill

City Link has come out fighting against suggestions that it has been trying to cut its wage bill by around GBP 4m to remain profitable. Sources in the industry contacted CM to say some staff at the firm had taken a wage cut and others had been made redundant following the company’s merger with Target Express last year.

However, City Link sales and marketing director Stuart Godman insists the company has not cut its wage bill, and has only made a few redundancies following the merger with Target.

“I can categorically deny the suggestion that anyone has been asked to take a pay cut in our business,” he says.

“In fact, we are continuing to invest in the business, and will open a number of new depots over the coming months. New depots will open at Worcester, Norwich, Coventry and Stoke by October, and the Cwmbran depot will be refurbished and the Oxford depot extended.”

Godman adds: “In any situation where companies come together, which in our case is the Target Express and City Link brands, it is inevitable that there will be duplication of roles, which result in sporadic redundancies as well as the need in certain regions to either consolidate or relocate depot locations.”