JCB has stopped production at most of its UK manufacturing plants as disruption resulting from the worldwide Coronavirus pandemic causes an unprecedented reduction in global demand. Source: Timberbiz
The company has halted production for almost two weeks at most of its nine manufacturing plants in Staffordshire, Derbyshire and Wrexham. Shop floor employees affected by the move will be paid in full during this period. No decision has yet been taken on what happens from the week commencing Monday, 30 March and beyond. Office staff will continue to work a 39-hour week, with many working from home, in support of the Government’s social distancing policy.
These measures are unprecedented in the history of JCB but are necessary to protect the business as it continues to deal with the health implications of the COVID-19 pandemic.
It has become more challenging to maintain business continuity in this volatile economic climate. JCB is a global exporter and worldwide demand for products has dropped sharply as customers cancel orders and defer deliveries.
This is not just a UK issue, it is worldwide and with countries like France, Spain and Italy going into lock-down, those key markets for construction equipment disappeared overnight. In light of this fast-changing situation, it was necessary to re-plan our production and, as a result.
JCB said that this production halt would allow them to take stock of the situation, re-plan order books, and prioritise products that are definitely required by customers, and ensure parts and components are reassigned to support the production of these products.
The vast majority of JCB’s 6500 workforce has been asked to stop working until at least the end of April. During this period, all affected JCB employees will be paid 80% of their basic pay. Senior JCB directors will not be taking a salary until further notice.
On a brighter note, JCB will re-start production at one of its factories in order to join the national effort to manufacture ventilators.
