JLR cyber-attack leaves suppliers facing pay cuts, union says
Unite calls for emergency government support after Jaguar Land Rover's IT outage halts production and forces supply chain workers to seek benefits
Workers across Jaguar Land Rover's (JLR) supply chain have been told to apply for universal credit as they face layoffs or reduced pay following a cyber-attack that has shut the carmaker's IT systems, the Unite union said.
Unite said many supply-chain staff were being laid off with "reduced or zero pay" after the hack forced the closure of production lines and a freeze on the company's computer networks. JLR declined to comment on the union's claim.
The attack, which occurred more than two weeks ago, has halted manufacturing globally and led JLR to tell large numbers of its 33,000 staff to stay at home. The carmaker has previously said factory production would not resume until at least Sept. 24, but people briefed on operations told the BBC disruptions could last until November.
Unite general secretary Sharon Graham said the government had a responsibility to protect jobs and urged ministers to set up emergency support for suppliers similar to the furlough-style scheme the Scottish government offered to bus maker Alexander Dennis. "Workers in the JLR supply chain must not be made to pay the price for the cyber attack," she said.
The supply chain that supports JLR directly underpins about 104,000 jobs in the United Kingdom and comprises many small and medium-sized firms that are highly dependent on the carmaker as their main customer. Industry figures estimate the crisis has cost JLR at least £50 million a week.
Liam Byrne, chair of the Commons business and trade committee, warned the attack could lead to hundreds of supply-chain staff being laid off. He said he had written to the chancellor requesting Covid-style emergency help for affected suppliers and described the incident as a "digital siege" that had sent a "cyber shockwave" through the supply chain.
A criminal investigation into the incident is under way. JLR said it delayed restarting production while it carried out a forensic investigation and considered a "controlled restart" of global operations.
There is growing concern among industry bodies and parliamentary figures that many of JLR's smaller suppliers lack the cash reserves and workplace flexibility to withstand a prolonged interruption. The company typically produces about 1,000 cars a day across its three British factories, and a sustained halt could ripple through regional economies that rely on automotive manufacturing.
The BBC has contacted the UK government for comment on calls for emergency support for JLR suppliers. JLR has said it will provide updates as investigations and recovery work continue.