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A prominent union has urged the Labour Party to “step up” and provide assistance to workers at supply-chain firms impacted by the ongoing Jaguar Land Rover (JLR) shutdown, which stems from a recent cyber-attack.
Production lines at the automotive manufacturer have been halted for over two weeks, raising concerns that some companies heavily reliant on JLR’s business could face collapse without adequate support.
Jason Richards, Unite’s regional officer for the West Midlands, warned that thousands, potentially tens of thousands, of jobs could be at risk if JLR, which operates plants in Wolverhampton, Solihull, and Merseyside, does not provide positive news soon.
Chris McDonald, Minister for Industry, stated that JLR is taking a leading role in supporting its own supply chain.
He added that cyber security experts are actively assisting JLR in resolving the issue as swiftly as possible.
“Yesterday, I met with West Midlands Mayor Richard Parker to discuss the impact of the Jaguar Land Rover shutdown on the region, and we agreed to maintain close communication while the company works to restore production,” he said.
The Society of Motor Manufacturers and Traders (SMMT) reported holding an emergency meeting of its automotive components section on Friday, with officials from the Department for Business and Trade in attendance.
“This meeting allowed us to directly hear from suppliers and understand the challenges and concerns they are currently facing,” the SMMT and the Department for Business and Trade said in a joint statement.
JLR responded by welcoming the meeting, emphasizing its importance in identifying the challenges faced by businesses in the aftermath of the cyber-attack.
JLR directly employs approximately 30,000 individuals, with an additional 200,000 employed within its supply chain.
Earlier this week, a coalition of Members of Parliament representing the West Midlands and Merseyside petitioned the government for financial aid for supply-chain firms.
Mr. Richards expressed his belief that there is “zero chance” of production resuming next week, following reports that suppliers were informed that JLR’s factories would remain idle until September 24.
JLR declined to comment on the union’s claims, stating that it is working tirelessly to restore its global applications.
“I don’t want to be pessimistic, and I don’t want to sensationalise this, but I really am concerned about the issue we find ourselves in,” Mr. Richards stated.
“Members within the automotive supply chain… some employers are laying off with pay, some employers are laying off on reduced pay, some employers are introducing interim banked hours agreements… but some are laying off without pay.
“They’ll get the statutory award of £39 a day for five days, and then after the five days they get zero and they’re being signposted to universal credit,” he told BBC Radio WM.
Mr. Richards suggested that the government could introduce a furlough-style scheme, while acknowledging the limitations of available resources.
“We’re having very little feedback from government – the Labour Party was farmed by the trade union movement… it’s time for the Labour Party to step up.”
Umesh Samani, chairman of the Independent Motor Dealers Association, based in Stoke-on-Trent, which represents over 1,000 members, noted that most independent dealers report not being severely affected at this time.
However, he added that the uncertainty surrounding the resumption of JLR’s operations is a significant concern.
“The bigger companies probably can ride the storm a little bit longer but the smaller ones in the supply chain… there’s no way they can continue,” he said.
He echoed the call for government intervention.
“They’ve got to do something – otherwise there’s going to be so many small businesses going bust, so they’ve got to try and help alleviate the situation,” Mr. Samani said.
Saqib Bhatti, Conservative MP for Meriden and Solihull East, and a signatory of the letter to Chancellor Rachel Reeves, told the BBC that government support needs to be “proactive and robust.”
“I’ve asked for a short-term loan scheme where the government convenes all the banks, and they ask the banks to come up with a solution on this,” he said.
“What I want is for the government to get those banks in a room to come up with a special loan facility; they will absolutely have the templates to do that.”
He also urged insurers to expedite claims processing.
“Do not dither and delay; there are jobs at stake here, there are businesses at stake here. We need real action,” he stated.
“Anyone you speak to will recognise that Jaguar Land Rover and our automotive sector is in our DNA as West Midlanders.
“This is really, really important, and if the supply chain goes, this could have a huge amount of ramifications – because once people leave the workforce, it’s really hard to get them back.”
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