Bosch raises its wage offer to striking employees

The company refused to divulge the details of the offer made by the company to worker

Bosch Limited today said the ongoing strike at its main manufacturing plant in Bangalore has not affected supply of components to its customers -- the original equipment manufacturers (OEMs). The company has engaged its management staff for production work and managing customers’ requirements through existing inventory and skeletal production.

“We are keeping our production up. So far, there has been no major impact on our customers,” Steffen Berns, President of the Bosch Group in India told Business Standard.

He said the company has increased its offering to striking employees in an effort to end the stalemate. Members of Mico Emplyees’ Association (MEA), an affiliated union at Bosch are on strike since September 16. They are demanding ‘huge’ rise in their salaries, which is revised every four years. The wage hike is due for them since January 2013.

However, Berns refused to divulge the details of the offer made by the company to workers. “I don’t want to have Union negotiation in the public. Union is launching many numbers in the public. I can only say that we have offered huge increase in our package and hope they will accept it and return to work,” he said.

Karnataka recently prohibited the strike and told workers to resume their work.

Berns also refused to offer further comments on the ban order challenged by the workers in the High Court.

“We will have to see what the High Court is going to say in this matter. Typically, the court is not involved in finding the solution,” Berns added.

The Union and workmen have filed a writ petition in the High Court of Karnataka challenging the Karnataka government order dated October 10, 2014 which prohibited the illegal strike.

The estimated loss on account of the strike is about 2 per cent of the turnover during the strike period, the company said in a filing to NSE. "The company continues to take all necessary measures in order to minimise the impact of the strike and has met most of the customer requirements through inventory and alternate production," the company added.