Labour urged to help JLR supply chain as cyberattack halts production
Unite warns thousands could lose work without government support as Jaguar Land Rover pauses output; MPs, industry groups press for action
Jaguar Land Rover has paused production at its Solihull and Merseyside plants for more than two weeks after a cyber attack disrupted operations, prompting warnings about the impact on suppliers and jobs.
Unite the Union's West Midlands regional officer, Jason Richards, said thousands or tens of thousands of workers could be laid off if there is no positive news from JLR as the pause drags on. He noted that some suppliers are already cutting hours or jobs and that a government response is needed to prevent a cascade through the automotive supply chain. A JLR spokesman said the company is leading the response for its network of suppliers and that cyber experts remain on site to resolve the issue as quickly as possible. Earlier this week, he said, West Midlands Mayor Richard Parker and he agreed to stay in close touch while production remains suspended.
A joint statement from the Society of Motor Manufacturers and Traders, following an extraordinary meeting of their automotive components section with officials from the Department for Business and Trade, said industry groups had listened to suppliers about the challenges they face and will continue to coordinate with government and industry on a path to restart.
Minister for Industry Chris McDonald said JLR was taking the lead on support for its own supply chain and that cyber experts continued to assist the car maker to resolve the issue as quickly as possible. He added that he had met with West Midlands Mayor Richard Parker to discuss the impact of the shutdown and that both sides would remain in close contact while production is paused.
Reuters reported that earlier this week a group of MPs from the West Midlands and Merseyside wrote to the government seeking financial help for supply-chain firms affected by the disruption. Richards described a patchwork of responses across the sector: some employers are paying staff, some are paying at reduced levels, some are using interim banked hours arrangements, and others are laying workers off without pay. He said many would be eligible only for the statutory £39-a-day pay for five days before moving to universal credit, and he argued for a furlough-like scheme to support workers and firms. “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,” he told BBC Radio WM. “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.” He added that there was very little feedback from government and that “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, which represents more than 1,000 members, said smaller companies would struggle without more clarity on when production would restart. While most independent dealers did not report immediate large effects, Samani warned that the lack of clarity around JLR’s restart date could threaten smaller supply-chain players sooner rather than later. “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 also emphasized the need 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.”
The disruption at JLR comes as the wider UK automotive sector weighs the balance between resilience and liquidity in the face of cyber risks that have slowed production lines and rattled regional economies. Industry officials say the path to restart hinges on rapid cyber remediation, supplier reconfiguration, and clear signals from government on any financial support packages. While JLR has stressed its own leadership in coordinating a return-to-work plan, industry groups and lawmakers have underscored the need for a broader safety net to prevent cascading failures across small and mid-sized suppliers that underpin the country’s car-making footprint.