The government will sit down with businesses from across the JLR supply chain over the coming days, amid calls for a Covid-style furlough scheme to help protect jobs.
The British carmaker is now in its third week of no production, with employees told not to come back to factories until September 24 at the very earliest.
However, it is not just JLR workers who have been impacted by the hack, with numerous suppliers also seeing business severely disrupted.
As a result, trade union Unite, says that some workers are now facing ‘reduced or zero pay’ and have been told they need to apply for Universal Credit.
The union now says that the government needs to step up and set up a furlough scheme, similar to the one used throughout the pandemic.
The calls come after the Scottish Government launched its own furlough scheme to protect jobs at Alexander Dennis bus building plants in Falkirk and Larbert, where 400 roles were set to be lost as part of a proposed move to Yorkshire.
Unite says that the UK Government has a ‘responsibility to protect jobs and industries that are a vital part of the economy’.
It has therefore written to ministers calling for a similar scheme to be introduced for the JLR supply chain, with the union also wanting ‘a seat at the table in the decision-making process’.
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.’
‘JLR taking the lead on support for their own supply chain’
It remains unclear whether the government is currently considering introducing a furlough scheme and a spokesman for the Treasury did not comment on the idea specifically, when approached by Car Dealer.
However, in a statement issued Car Dealer, minister for industry, Chris McDonald, said that JLR is currently ‘taking the lead on support for their own supply chain’.
Despite this, the minister is planning to meet with ‘wider industry and supply chain businesses in the coming days’.
He also confirmed that government cyber experts are ‘supporting JLR to resolve the issue as quickly as possible’ but did not address calls for a furlough scheme.
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 are supporting them to resolve the issue as quickly as possible.
‘I met the company yesterday to discuss their plans to get production started again, and I’ll be meeting with wider industry and supply chain businesses in the coming days to hear more about the issues they are facing.’
JLR said on Tuesday morning (Sept 16) that it was extending its current ‘pause in production’ until next Wednesday, although national reports suggest the current malaise could stretch until November.
A spokesman for the carmaker said: ‘We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time.
‘We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses.’
Experts have warned that the devastating cyber attack could result in a £150m hit to the company every month its factories remain shut.