Business Standard

Bosch strike continues as talks fail

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BS Reporter Bangalore

The tool-down strike by Bosch workers at the Adugodi plant here continued, with the talks between the management, workers’ union and labour commissioner failing.

Bosch said the ongoing strike has resulted in a loss of Rs 60 lakh to the state exchequer and over Rs 4 crore to the central exchequer in the past week. However, the company has not mentioned the amount of loss suffered by it due to the strike.

Bosch employees are observing strike from September 28. About 4,000 employees have been protesting against the company’s decision to outsource manufacturing of a few products.

At the labour commissioner’s office, the MICO Employees Association members refused to accept the management’s offer to outsource and argued there was no mention of it in the wage settlement on October 25, 2010. The agreement was to remain in force till December 31, 2012.

 

“We are not ready to change our stance as it was not agreed upon at the time of signing the settlement. However, we have no objection to the company including fresh clauses pertaining to outsourcing and ancillarisation at the time of signing the next settlement in 2013,” C Hanumantha, vice president, MICO Employees Association, told Business Standard.

The Bosch management said the decision to ancillarise and outsource of non-core manufacturing processes was imperative for modernising the plant and to stay competitive globally.

“Such practices have been used on several occasions by the government and industry. Outsourcing and ancillarisation followed at Bosch are in accordance with our previous wage settlement and has become part of our service condition. Besides, workmen are given one increment and one promotion. The move has in no way resulted in job loss, retrenchment or reduced remuneration and incentives for workmen in the last two decades in Bosch,” the company said in a statement.

According to the company policy, workmen who were redeployed are re-trained and given additional benefits. “Ancillarisation and outsourcing” are necessary to stay competitive, maintain growth and ensure future survival.

Such measures ensure growth of not just the organisation but growth of the employees too, said the company.

“The average remuneration of Rs 50,000 per month (CTC) to our 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. Sustaining and further extending such benefits will largely depend on the competitive edge of the company in a globally competitive market.”

“The decision to outsource is expected to result in betterment of the organisation and employees. Despite the illegal strike, Bosch encourages and welcomes willing workmen to come in and resume normal work at the earliest,” Bosch said.

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First Published: Oct 05 2011 | 12:57 AM IST

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