Rich Mulligan, a 53-year-old stock control worker at Leadec in Coventry, reported that he has not received wages for the past two weeks, forcing him to rely on his retirement savings. His factory, supplying Jaguar Land Rover (JLR), effectively ceased operations about three weeks ago, shortly after JLR suffered a cyberattack on August 31. There are concerns that some of JLR’s suppliers may face bankruptcy within a week due to the ongoing production halt.
Mulligan noted that the situation began with a slowdown, initially marked by difficulties accessing JLR’s systems. As JLR is the primary customer of Leadec, it soon became apparent that there was less work, resulting in layoffs. Approximately 30,000 individuals are directly employed by JLR in the UK, with around 100,000 working in the supply chain. Following JLR’s suspension of production at its plants in West Midlands and Merseyside, fears have increased regarding potential layoffs affecting hundreds within the supply chain.
In response to the crisis, the UK government announced a £1.5 million loan guarantee aimed at supporting the supply chain. However, production is not expected to resume until October 1 at the earliest. Experts warn that some suppliers may be on the brink of failure.
Mulligan indicated that Leadec’s staff includes about 200 full-time workers, alongside agency employees, with temporary staff being the first to be let go. He mentioned that many companies in the supply chain have faced payment delays from JLR.
To assist employees facing financial difficulties, Leadec has established a food bank. Mulligan expressed concern for his colleagues, particularly those with families, and hopes the government assistance will be utilized to sustain the supply chain and provide for those without wages.
Source: https://www.bbc.com/news/articles/c0q7395np59o?at_medium=RSS&at_campaign=rss