Jaguar Land Rover Supply Chain Workers Reportedly Told to Apply for Universal Credit, Labor Group Claims
Employees across the Jaguar Land Rover vendor network are reportedly being advised to register for government assistance in the wake of the recent digital breach, a prominent union has stated.
Unite stated that workers are facing layoffs with “reduced or zero pay” following the security incident, which has forced the automaker to shut down its IT networks and halt manufacturing operations.
Calls for Government Support
Unite has urged the British authorities to create a furlough scheme, similar to the one introduced by the Scottish government for bus maker Alexander Dennis.
JLR declined to comment on the claims made. It had earlier stated that manufacturing operations would not resume until 24 September at the earliest, though insiders indicate that disruption could continue until November.
“Workers in the automaker’s vendor network should not be forced to bear the consequences for the digital intrusion,” the representative added.
Widespread Financial Effect
The company’s supply chain sustains 104,000 jobs in the UK and sits at the top of a hierarchy of suppliers, a significant number of whom are highly dependent on the carmaker as their main client.
The security breach, which occurred over a fortnight back, has forced the producer to close its IT infrastructure and stop production lines globally.
The crisis is thought to have cost JLR at least £50m per week. A legal probe is under way.
Concerns are increasing that numerous of JLR’s partners, small and medium-sized firms, lack the resources to handle an extended interruption to business and resulting losses.
Production Stoppages and Political Reaction
JLR’s three factories in Britain normally produce approximately 1,000 vehicles daily. It has told a large number of its 33,000 employees to stay at home.
A parliament member, the chair of the parliamentary trade group, commented that the attack could lead to numerous of supply chain workers being laid off.
The official said he had written to the chancellor to ask for pandemic-like financial support for suppliers.
“This is not a simple glitch on the radar at Jaguar Land Rover, this is a cyber blockade and it's sent a cyber shockwave through their vendor network,” he stated.
JLR has stated it postponed restarting production as a “forensic investigation” of the security incident was ongoing and it considered a “controlled restart” of global activities.