Auto components major Bosch today termed the "tool down" strike by its employee union MICO Employee’s Association (MEA) as illegal.
"This act by MEA is a gross violation of terms of agreement signed between the company and the union in the last wage settlement in October 2010 which protects continuity of all rights, obligations and privileges of either party signed in previous agreements," the company said in a statement.
MEA had declared "tool down" strike from September 28 against outsourcing of certain non-core activities for modernisation and cost competitiveness.
Bosch said the decision of ancillarisation and outsourcing of non-core manufacturing processes was imperative for modernisation in order to stay globally competitive.
It contended that outsourcing and ancillarisation followed were in accordance with its previous wage settlement and had already become a part of its service condition.
"Besides, workmen are given one increment and one promotion. This move has in no way resulted in job loss, retrenchment or reduced remuneration and incentives for workmen in last two decades," Bosch said.
"Average remuneration of Rs 50,000 pm to its workmen is one of the highest in the region and industry, and is a testament to the significance Bosch assigns to employee betterment and welfare," the company said.
Sustaining and further extending such benefits will largely depend on the competitive edge of the company in a globally competitive market, Bosch said.
Bosch said its plant was not shut down and some minimum production was being managed by officers as a stop gap arrangement including all essential services which are intact and unaffected.
"Dispatches to customers across the country are made through the available stocks," the company added.
