HomeBusinessLabour must step up...

Labour must step up to help JLR supply chain jobs, says Unite

Ed Jamesin Solihull and

Chloe HughesWest Midlands

Jason Richards A man with a bald head has reading glasses on his head. He has grey stubble and is wearing a brown shirt. There is a red Unite the Union lanyard around his neckJason Richards

Jason Richards said thousands or tens of thousands of people could be laid off if there was no positive news from JLR

A union has said the Labour Party needs to “step up” and help workers from supply-chain firms affected by the Jaguar Land Rover (JLR) shutdown following a cyber-attack.

The car-maker’s production lines have been at a standstill for more than a fortnight, with concerns growing some companies reliant on the brand’s business could go bust without support.

Jason Richards, Unite’s regional officer for the West Midlands, said thousands or tens of thousands of people could be laid off if there was no positive news from JLR, which has plants in Wolverhampton, Solihull and Merseyside.

Minister for Industry Chris McDonald said JLR was taking the lead on support for its own supply chain.

He said cyber experts continued to support JLR to resolve the issue as quickly as possible.

“Yesterday I met West Midlands Mayor Richard Parker to discuss the effect the shutdown at Jaguar Land Rover is having on the region, and we agreed to keep in close touch while the company works to get production up and running again,” he added.

A spokesperson for the Society of Motor Manufacturers and Traders said they held an extraordinary meeting of their automotive components section on Friday, which was attended by officials from the Department for Business and Trade.

“This allowed us to listen to suppliers directly and understand the challenges and concerns they are facing,” the two organisations said in a joint statement.

In response, JLR said it welcomed the meeting, and said it was an important move to identify challenges that businesses were facing following the cyber attack.

Reuters Staff members assemble Range Rover Evoque SUVs on the production line at Jaguar Land Rover's Halewood factory in LiverpoolReuters

Earlier this week, a group of MPs from the West Midlands and Merseyside wrote to the government, asking for financial help for supply-chain firms

“I don’t want to be pessimistic, and I don’t want to sensationalise this, but I really am concerned about the issue we find ourselves in,” said Mr Richards.

“Members within the automotive supply chain… some employers are laying off with pay, some employers are laying off on reduced pay, some employers are introducing interim banked hours agreements… but some are laying off without pay.

“They’ll get the statutory award of £39 a day for five days, and then after the five days they get zero and they’re being signposted to universal credit,” he told BBC Radio WM.

Mr Richards suggested that a furlough-type scheme could be introduced by the government, but added that he understood there was not a “magic money tree”.

“We’re having very little feedback from government – the Labour Party was farmed by the trade union movement… it’s time for the Labour Party to step up.”

Reuters Hundreds of new Land Rovers, some with plastic covers, are seen on a parking lot at a factory in Halewood.Reuters

Umesh Samani, chairman of the Independent Motor Dealers Association said smaller companies would struggle without more clarity on when production would restart

Umesh Samani, chairman of the Independent Motor Dealers Association, based in Stoke-on-Trent, which has more than 1,000 members, said most independent dealers were saying they were not currently badly affected.

However he said the lack of clarity around when operations at JLR could begin again was an issue.

“The bigger companies probably can ride the storm a little bit longer but the smaller ones in the supply chain… there’s no way they can continue,” he said.

He said he agreed the government needed to step in.

“They’ve got to do something – otherwise there’s going to be so many small businesses going bust, so they’ve got to try and help alleviate the situation,” Mr Samani said.

‘Do not dither and delay’

Conservative MP for Meriden and Solihull East, Saqib Bhatti, was one of those who wrote to Chancellor Rachel Reeves – he told the BBC government support needed to be “proactive and robust”.

“I’ve asked for a short-term loan scheme where the government convenes all the banks, and they ask the banks to come up with a solution on this,” he said.

“What I want is for the government to get those banks in a room to come up with a special loan facility; they will absolutely have the templates to do that.”

He also asked for insurers to deal with claims quickly.

“Do not dither and delay; there are jobs at stake here, there are businesses at stake here. We need real action,” he said.

“Anyone you speak to will recognise that Jaguar Land Rover and our automotive sector is in our DNA as West Midlanders.

“This is really, really important, and if the supply chain goes, this could have a huge amount of ramifications – because once people leave the workforce, it’s really hard to get them back.”

Source link

- A word from our sponsors -

spot_img

Most Popular

More from Author

- A word from our sponsors -

spot_img

Read Now

Dolly Parton leans on music industry for support amid health scares: Source

Dolly Parton has reportedly been finding comfort in the company of fellow music artists during a challenging period for...

Rs 1 lakh Crore Fund To Mitigate R&D Risks, Spur Private Investment In Cutting-Edge Technologies: Secretary DST | Economy News

New Delhi: The recently launched Rs 1 lakh crore Research Development and Innovation (RDI) fund, particularly focused on India's private sector, aims to support the private research and innovation mindset among players and mitigate the financial risks associated with it.   Speaking at a workshop organised by the Department...

With presidents and royalty in attendance, Egypt unveils $1bn cultural ‘GEM’

Prime ministers, presidents and royalty descended on Cairo on Saturday to attend the spectacle-laden inauguration of a sprawling new...

Obituary: James Watson

Getty ImagesIn February 1953, two men walked into a pub in Cambridge and announced they had found "the secret of life". It was not an idle boast.One was James Watson, an American biologist from the Cavendish laboratory; the other was his British research partner, Francis Crick....

T Rabi Sankar: Frauds up since July, battle on

MUMBAI: RBI deputy governor T Rabi Sankar said the fight against digital fraud is far from over, noting that the decline seen earlier this year reversed in July, with cases rising again.He said fraud levels had been falling since the start of the year before...

iOS 26.1 update boosts iPhone security and performance improvements

NEWYou can now listen to Fox News articles! Apple's iOS 26.1 update is more than a standard patch. It boosts security, speeds up performance and adds practical upgrades to features you already use. The update fixes dozens of vulnerabilities that impact Safari, Photos and Apple...

Florence Welch opens up about ectopic pregnancy and doubts about releasing new music

Florence Welch opens up about ectopic pregnancy and doubts about releasing new music - CBS News ...

Elon Musk’s $1tn pay deal approved by Tesla shareholders

Tesla shareholders have approved a record-breaking pay package for boss Elon Musk that could be worth nearly $1tn (£760bn).The unprecedented deal was approved by 75% of Tesla shareholders who cast votes at the firm's annual general meeting on Thursday.The deal requires Musk, who is already the world's...

Hamza Ali Abbasi gets real about adultery

Hamza Ali Abbasi. Photo: file ...