Staffordshire's Faurecia now will furlough workers following pressure from union Unite.
The supplier has now confirmed that its workforce would be registered under the government's job retention scheme following pressure from the union which roped parent company PSA and customer Jaguar Land Rover into the fight.
The interiors specialist had repeatedly refused to confirm laid off workers would be registered under the scheme. It employs about 400 people at two sites at Fradley in Staffordshire as well as at other locations across the UK and had told the workforce they would be laid off until at least 20 April, during which time they could either take unpaid leave, any remaining annual holiday or be paid in advance using a controversial banked hours scheme that is deeply unpopular with staff.
But staff will now be able to receive 80% of their wages from the government, Unite said on Wednesday (8 April).
Unite welcomed the move by Faurecia, which had previously refused to comment on whether it was intending to register its workforce, and called on the firm to pay workers as normal until the government support comes through.
Regional officer Melvyn Palmer said: "Unite welcomes Faurecia's decision to register its workers under the government's job retention scheme.
"Faurecia's workforce will no doubt be relieved that they have one less thing to worry about during these troubling times.
"Faurecia's management must now pay workers as normal until the funds from the job retention scheme come through.
"It is imperative that companies which are closed during the lockdown register their staff under the job retention scheme.
"Employers must also communicate the fact that they are doing so to their workers, who will naturally be concerned about paying the bills and putting food on the table when the economy has ground to a halt."
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