Bosch declares lock-out at Bangalore plant

Decision taken after talks with workers fail.

Bosch Ltd, an automobile component maker, has declared lock-out at its Naganathapura Plant near here with effect from last night, after talks with workers over wage revision failed.

“The decision has been taken considering the safety of employees, machineries and installations, as a result of workmen associates of the plant resorting to physical intimidation of managers and officers of the plant during their ‘Go Slow’ strike and the subsequent ‘Tool Down’ strike,” the company said in a statement.

The company claimed while the negotiations were in the initial stages, the Mico Karmikara Sangha – Naganathapura (MKS-N), the recognised union of the plant, declared a Go Slow strike with effect from February 13, which continued till March 6.

The workmen associates have been negotiating their Long Term Wage Settlement with the company since the expiry of the last settlement on December 31, 2008. The MKS-N submitted the new charter of demands on July 29, 2009. Since then, the company management and the union representatives have had 14 sessions of negotiations on the issue. MKS-N, among others, has demanded substantial increase in wages and enhanced medical facilities for the family members of employees.

During the negotiations, Bosch claimed to have offered a substantial revision of wages, equal to what was offered in the last negotiations and substantial improvements in respect of hospitalisation facilities. Further, the company offered to transfer around 45 indirect workmen to direct production areas.

As a result of these strikes, the company claims to have lost Rs 6 crore in February, while suffering under-utilisation of capacity. The average cost to company (CTC) of a workman associate at the Naganathapura plant is Rs 37,000 per month, the company said.

Bosch manufactures starter motors, spark plugs, alternators and start-stop systems among others at its Naganathapura facility. The company employs 715 shopfloor workers and 287 supervisors at this facility.