JLR supply chain staff told to apply for universal credit, union says

JLR supply chain staff told to apply for universal credit, union says

Workers in the Jaguar Land Rover (JLR) supply chain have been advised by the Unite union to apply for universal credit due to layoffs resulting from a recent cyber attack on the company. This incident has led to reduced or zero pay for many employees as production halts and IT networks remain shut down.

Unite is advocating for the establishment of a furlough scheme similar to one introduced by the Scottish government for the bus manufacturer Alexander Dennis. JLR has not commented on these claims, but it has indicated that factory production may not resume until at least September 24, with reports suggesting that disruptions could extend into November.

The general secretary of Unite, Sharon Graham, emphasized the government’s obligation to protect jobs in key industries. There are concerns that the financial burden from this cyber attack should not fall on the workers in the JLR supply chain, which supports approximately 104,000 jobs in the UK and is heavily reliant on JLR for business.

The cyber attack, which occurred over two weeks ago, has resulted in a significant impact on JLR’s operations, reportedly costing the company at least £50 million each week. A criminal investigation into the incident is ongoing. Small and medium-sized suppliers, which form a crucial part of JLR’s supply chain, may struggle to withstand prolonged disruptions.

Typically, JLR’s UK factories produce around 1,000 cars daily, but many of its 33,000 employees have been instructed to stay at home. Liam Byrne MP, chair of the Commons business and trade committee, has expressed concerns that the attack could lead to significant job losses among supply chain workers and has reached out to the chancellor for emergency assistance for affected suppliers. JLR has stated that the delayed production restart is due to a forensic investigation of the cyber attack and is considering a controlled resumption of operations.

Source: https://www.bbc.com/news/articles/c784nwvj1l3o?at_medium=RSS&at_campaign=rss

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