Bosch shuts Bangalore plant due to strike

Auto components major Bosch Ltd today said it has shut the Bangalore plant, following a tool down strike by workers since Wednesday.

In a filing to the Bombay Stock Exchange, the company said union and workmen of the company's Bangalore plant have commenced a tool down strike from September 28, without giving any prior notice to management.

"In view of the Union's illegal and unjustified strike, the management of the company has decided to shut down plant operations for workmen wef (with effect from) September 29, 2011," it said.

Efforts are at hand to resolve the matter and restore normalcy at the earliest possible date, the filing added.

In a statement on its website, the company said the workers are against the management's decision to outsource "certain non-core manufacturing and support processes for cost rationalisation and competitive product pricing".

It said, "This decision has been taken after monthly meetings with its labour union. Though the original plan would have resulted in the re-deployment of about 140 workers, it has been now scaled down due to the current slowdown in the economy."

So far this year, only about 40 workers have been re-deployed. Despite deliberations on the topic, the union has decided to protest the initiative without any advance notice through a tool down strike, it said.

Workers could not be reached for comments. As per the company, the Bangalore plant employs about 2,500 unionised workmen.

Bosch Ltd has been facing labour issues over the past one year at its different factories.

On March 8 last year, the company had declared a lock- out at the Naganathapura plant, on the outskirts of Bangalore following a strike. The lock-out was lifted a week later.

The company's scrips were trading at Rs 7,075 per share in the afternoon trade on the BSE, up 1.48% from the previous close.