A group of MPs has written to the government to ask for support as companies in Jaguar Land Rover’s supply chain deal with the fall-out of a recent cyber hack.
Staff at car manufacturer JLR were sent home in early September after it was forced to take its IT systems offline.
It emerged that the company had been hacked by Scattered Spider, a hacker group that had previously targeted Marks & Spencer.
Production lines at JLR have now been closed for more than a fortnight, and suppliers to the firm have been told that production is unlikely to resume until the middle of next week at the earliest.
Supply chain news
Estimates suggest that around 200,000 people are employed in the company’s supply chain, and MPs are seeking financial support for these firms, some of whom fear they could go bust.
Antonia Bance, Labour MP for Tipton and Wednesbury, said she had heard from companies in JLR’s supply chain that were experiencing cash-flow problems.
“A number of the plants in my area have sent all of their staff home and stopped production,” said Bance, who is a member of the Business and Trade Committee.
“Most of them are continuing to pay their staff, but obviously that’s a real financial strain on these sometimes quite small businesses, particularly when there is no end in sight.”
She added that a number of companies had approached their lenders to extend overdraft facilities, but suggested the government could step in with some form of furlough scheme, or by guaranteeing loans.
The Unite union has also called for the government to offer a furlough scheme to support JLR’s supply chain, claiming that some workers have been advised to sign up for Universal Credit.
Earlier this week, the Scottish government committed to funding furlough for workers at struggling bus manufacturer Alexander Dennis.
Sharon Graham, Unite general secretary, said: “Workers in the JLR supply chain must not be made to pay the price for the cyberattack. It is the government’s responsibility to protect jobs and industries that are a vital part of the economy.
“Ministers should take the lead from the Scottish government’s support package for Alexander Dennis staff and implement a similar scheme for workers in the JLR supply chain now.”
Minister for industry Chris McDonald said he had met with JLR bosses and would meet with supply chain businesses in the coming days.
He said: “We know this is a worrying time for those affected, and although Jaguar Land Rover are taking the lead on support for their own supply chain, our cyber experts continue to support them to resolve the issue as quickly as possible.”
A total of 31 MPs have signed the letter to the government, hailing from the West Midlands and Merseyside.
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