Supply chain personnel at JLR urged to submit applications for Universal Credit, asserts union
Jaguar Land Rover (JLR) is facing a significant challenge as a result of a cyber attack that has caused production shutdowns at all of its global plants since early September. The ongoing issues at JLR have stifled retailers and led to concerns about the financial stability of some suppliers.
Andy Palmer, the former CEO of Aston Martin, told the BBC on 12 September that he would not be surprised to see bankruptcies among JLR's suppliers due to the shutdowns. Palmer added that layoffs are either already happening or are being planned among JLR's suppliers. Reports suggest that some of these suppliers could go bankrupt as a result of the disruption.
The cyber attack has caused issues with parts ordering, which have not yet been resolved. JLR bosses are scheduled to meet with ministers on 17 September to discuss support measures for plant workers, although this has not been officially confirmed. In the meantime, the majority of JLR's employees have been off work, and the issues with parts ordering due to the cyber attack are still present.
Unite, the workers' union, alleges that suppliers are moving workers onto reduced or zero-hour contracts. In response, Unite general secretary Sharon Graham has written to the UK government demanding a furlough scheme to supplement suppliers' workers' pay packets. Graham urges the UK government to protect jobs and industries that are a vital part of the economy.
Retailers continue to be stifled due to the cyber attack on JLR. Workers within the JLR supply chain are being advised to apply for Universal Credit. The UK government has been called upon to establish a furlough scheme to compensate the wages of workers in the JLR supply chain while they cannot work due to the cyber attack on JLR.
The cyber attack is estimated to be costing JLR up to £5 million per day, according to David Bailey, a business economics professor. In light of these costs and the potential bankruptcies among suppliers, the situation at JLR is a significant concern for the UK economy.
Graham compares the situation to a scheme set up by the Scottish government to support bus maker Alexander Dennis. She argues that the UK government should take similar action to protect jobs and industries that are vital to the economy. As the cyber attack continues to cause disruption, it remains to be seen how the situation will develop and what measures the UK government will take to support JLR and its suppliers.
