“I haven’t received wages for the past two weeks. I’m now drawing upon savings, funds that I had allocated for retirement, without a clear indication of when this situation will be resolved,” says Rich Mulligan, 63, a stock control worker at Leadec in Coventry, a facility supplying wheels and tires to Jaguar Land Rover (JLR).
According to Mr. Mulligan, the factory “effectively ceased operations” approximately three weeks ago, shortly after JLR experienced a cyberattack on August 31. Concerns are mounting that some of JLR’s suppliers could face collapse within a week due to the ongoing production halt.
“Initially, it was a slowdown,” Mr. Mulligan stated. “The first sign was our inability to access the JLR systems.”
Leadec has been contacted for comment.
With JLR as its primary client, Mr. Mulligan explained that it gradually “became evident that we had significantly less work.”
Approximately 30,000 individuals are directly employed at JLR’s UK plants, with an additional 100,000 working within its supply chain.
Following the manufacturer’s forced production pause at its West Midlands and Merseyside plants, there are fears that hundreds of supply chain workers could face layoffs.
On Saturday, the government announced a £1.5m JLR loan guarantee, with Business Secretary Peter Kyle stating an “explicit intention that that is to support the supply chain”.
However, with production not expected to resume until October 1 at the earliest, industry experts suggest some suppliers are on the “brink of collapse”.
Mr. Mulligan estimates that Leadec’s Coventry factory employs approximately 200 full-time workers, including agency staff.
He stated that temporary staff were released first after the cyberattack, followed by permanent employees.
“Because many companies in the supply chain have not been paid by JLR for five days in a three-month period, employees are entitled to statutory lay-off pay of £39 per day,” he explained.
“Once those five days of pay are exhausted, we are technically employed by the company, but there is no work available, resulting in a lay-off situation.”
Mr. Mulligan, who also serves as a Unite shop steward, noted that Leadec has established a food bank to support its workers facing severe financial hardship.
“I am in a more fortunate position due to my age, as my mortgage is paid off, and my children are grown,” he stated. “These are low-paying jobs, with wages just above the minimum wage threshold.”
“Individuals with rent, mortgages, and children are the ones who are truly struggling.”
“Ultimately, the responsibility lies with a particularly avaricious group of cyber hackers,” he added. “I do not hold my company accountable for this.”
He hopes the £1.5bn loan will be allocated to sustaining the supply chain and supporting workers who have been left without wages.
“We needed the money two weeks ago,” he said, adding that he had already witnessed colleagues resigning to seek alternative employment.
“Their skills are being lost, which is detrimental… But people will do what they need to do to provide for their families.”
Steve Whitmarsh, who operates Solihull-based leasing and fleet management service Run Your Fleet, described the government’s loan announcement as “very welcome.”
“It is encouraging that they have stepped up and offered support,” he said.
While his firm has not been directly financially affected, several customers with JLR vehicles have been unable to obtain parts for repairs, he noted.
He added that the government has now placed “the onus back on JLR to support their supply chain.”
Steve Morley, chair of the Confederation of British Metalforming, told BBC Politics Midlands that the supply chain was at a “cliff edge,” and some businesses had reported having less than 10 days of cash supply remaining.
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