JAGUAR Land Rover’s (JLR) suspension of production after last month’s cyber-attack has thrown tens of thousands of workers and small suppliers into crisis, with growing calls for government intervention and nationalisation of the carmaker.
The company’s three UK factories in Solihull, Halewood and Wolverhampton have been silent since the end of August and will not restart until at least 1 October.
About 30,000 workers are directly employed at these sites, while another 100,000 rely on the supply chain.
Unite reports that many are already being laid off with ‘reduced or zero pay’ and told to seek Universal Credit.
Some of the smaller firms that produce components solely for JLR warn they will ‘literally run out of money’ within weeks if no action is taken.
‘When JLR stands back up again and is ready to go … it may be that some of the supply chain isn’t ready to go, if they’ve lost the skilled labour that they rely on, or maybe some of the businesses have gone under,’ Labour MP Antonia Bance said.
Suppliers told ministers they do not need empty assurances but ‘real help’, insisting that promises alone cannot keep workers paid or factories alive.
Despite the growing hardship, JLR has offered little beyond platitudes about ‘supporting customers, suppliers, colleagues, and retailers’.
Workers accuse the company of protecting its brand while leaving staff and contractors to absorb the shock.
Economists warn that every week of shutdown, costing JLR an estimated £50m, pushes more families into insecurity.
Cafes, transport companies and other local businesses dependent on JLR’s workforce are also being hit.
The government is considering options including loans to suppliers or even stockpiling components, but these proposals are widely regarded as inadequate.
Unions argue only a Covid-style furlough scheme could prevent immediate collapse, but ministers are resisting.
Professor David Bailey of the University of Birmingham warned that if parts of the supply chain collapse, restarting production will be far more difficult.
Growing voices across the political spectrum are demanding nationalisation, arguing that JLR’s private ownership under India’s Tata Motors has left British workers and industries exposed to corporate indifference.
Conservative MP Saqib Bhatti has admitted that ‘failure to support suppliers could have really significant economic consequences’ for the West Midlands.
Trade unions insist that only public ownership can guarantee that jobs, skills and the broader industrial base are protected from corporate neglect and global shocks.