JLR supply chain workers told to seek universal credit following cyber attack

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A major cyber attack on automotive giant Jaguar Land Rover (JLR) has sent shockwaves through its UK supply chain, with a union claiming that affected workers are being laid off and told to apply for universal credit.

The Unite union has called on the government to establish a furlough scheme, similar to one recently set up for bus manufacturer Alexander Dennis, to protect the jobs of thousands of people reliant on JLR.

The cyber attack, which occurred more than two weeks ago, forced JLR to shut down its IT networks and halt production, disrupting a supply chain that supports 104,000 UK jobs. Unite general secretary Sharon Graham stated that workers are being let go with “reduced or zero pay” as a result of the disruption. The crisis is estimated to be costing JLR at least £50 million a week, and a criminal investigation is now underway.

While JLR has declined to comment on the union’s claims, the company had previously announced that factory production would not resume until September 24 at the earliest.

However, internal sources suggest the disruption could extend into November, raising significant concerns for the many small and medium-sized firms in the supply chain that are highly dependent on JLR.

Liam Byrne MP, chair of the Commons business and trade committee, described the incident as a “digital siege” that has sent a “cyber shockwave” through the industry. He has written to the chancellor to request emergency financial assistance, arguing that hundreds of supply chain staff could be laid off without government intervention.

Byrne compared the severity of the hack to an attack that previously impacted Marks and Spencer, highlighting the scale of the crisis.

Unite is adamant that workers should not have to “pay the price” for the cyber attack. The union’s call for government support reflects growing fears that without intervention, many suppliers may face bankruptcy, compounding the economic fallout from the hack.

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