Bosch workers in Bangalore on strike

While the company has offered a hike of Rs 17,000 per head per month, the workmen are demanding around Rs 20,000 hike per month

Production has stopped at the main manufacturing unit in Bangalore of Bosch, largest supplier of automotive components to original equipment makers, after a strike begun by employees on Tuesday. Around 2,600 employees (including 350 temporary workers) affiliated to the MICO Employees Association, the official trade union, said they were on strike from the first shift.

They want a rise in pay and other benefits like more of medical facilities and hospitalisation expense reimbursement. The rise they want in their monthly salaries is about Rs 20,000.  A pay rise is done once every four years and the management is yet to announce a rise for the four years starting January 2013.

Bosch has four manufacturing plants in the country at Bangalore, Naganathapura, Nashik and Jaipur. However, the management concluded wage negotiation at its Nashik plant in April this year. In other three plants, the wage talks are still continuing.

Even though the workers union had served a strike notice two weeks ago, the management has termed it as illegal. ?We have termed the strike illegal because the matter is under negotiation in the presence of labour commissioner. When the negotiations are going on, the Union cannot go on strike,? a company spokesperson said.

The Management is in discussion with the Union to restore normalcy at the earliest with the intervention of the Additional Labour Commissioner, Karnataka, the company said in a filing to Bombay Stock Exchange.

This is the second such strike at Bosch's Bangalore plant in the last 18 months. In March 2013, the employees had gone on strike to protest against suspension of an employee by the management.

"We have not reported for duty from the start of first shift this morning. However, the management is continuing with the strike with the help of trainees and management staff," a member of MEA said.

The company is prepared to meet the market demands as it has stocked a huge inventory in case if the strike prolongs for a longer period, he said.

The current Cost to Company (CTC) offered to a workman in Bangalore plant is Rs 65,000 and after negotiations, the company is willing to offer an increase of Rs 17,000. The Union is asking for much higher amount. The Union has also demanded for walk-in/walk-out medical benefits, Bosch spokespersons said.

"Over a period of 20 months, 36 negotiation meetings have been held. During this negotiation process, the Management put forth its best offer for the Union's consideration, but hasn't been able to reach an agreement due to their unreasonable demands," he said.

The Government is supporting a conciliation process through the Additional Labour Commisioner's (AdLC) office. "The company urges its workmen and union to acknowledge the current business situation and resolve this issue amicably through dialogue and cooperation," he added.

Earlier, in September and October 2011, the workers had launched a 16-day 'tool-down' strike to protest the company's move to outsource certain jobs, thereby causing a production loss of close to Rs 100 crore. Before that, in March 2011, production was affected at the plant for a couple of days over the demand for a wage hike, an issue, which was settled amicably after Labour Commissioner, intervened.