Furlough plea for JLR suppliers after cyber attack

The production lines ground to a halt last month

The government should create a furlough scheme for workers affected by the continued closure of Jaguar Land Rover's (JLR) factories, a council leader has said.

Production at JLR's Halewood site in Merseyside ground to a halt following a cyber-attack last month and the carmaker has said it will not restart until 1 October at the earliest.

Knowsley Council leader Graham Morgan said he was concerned about the supply chain, and smaller businesses for whom JLR was a major or even only customer.

While "proud to have a world-class organisation" like JLR in his borough, Morgan said his "biggest concern" was the small and medium-sized businesses which supply parts and services to the Halewood plant.

The Labour politician told BBC Radio Merseyside many of the firms which supply JLR were under "huge financial pressure".

Morgan said: "If one of those companies falls down, even when Jaguar Land Rover returns to production they can't make cars if parts of the cog [are] missing."

He said he had been reassured by conversations with MPs and unions that "some kind of compensation package" would be put in place, although this has not been confirmed by either the Department for Trade or the Treasury.

Morgan said it was "important" that "some kind of furlough scheme was put in place" until production restarts and the factory, where the Range Rover Evoque and Discovery Sport are made, "gets back to normal".

He said: "The government is going to need to look at the cashflow problems of each individual company."

He said manufacturing was such a significant part of his local economy, as well as in the West Midlands where JLR operates plants in Solihull and Wolverhampton.

Morgan stressed: "This is people's livelihoods. They've got to pay their bills, their mortgages and put food on the table for their families, so it should be the number one subject."

'Deeply worrying time'

An investigation is under way into the cyber attack, which began on 31 August.

Liverpool City Region metro mayor Steve Rotheram described the hackers as "monsters".

A spokesperson for JLR said it had extended the current pause in production until 1 October following the cyber incident.

They said: "Our teams continue to work around the clock alongside cybersecurity specialists, the National Cyber Security Centre, and law enforcement to ensure we restart in a safe and secure manner.

"Our focus remains on supporting our customers, suppliers, colleagues, and our retailers, who remain open.

"We fully recognise this is a difficult time and we thank everyone for their continued support and patience."

The Department for Business and Trade would not comment directly on the request for a supply chain furlough scheme.

Business Secretary Peter Kyle said: "I know this is a deeply worrying time for all those affected by the ongoing cyber incident and that's why I visited JLR today to hear from the company, supply chain and workers.

"Getting JLR back online as soon as possible is my top priority, providing much needed certainty to workers and suppliers."