Bosch suspends work at city plant

The management of Bosch Limited, the Indian subsidiary of German automobile components supplier to OEMs, on Friday shut down operations at the Bangalore factory following the failure to resolve issues with its striking employees. The workers launched a ‘tool-down’ strike on September 28 to protest the move to outsource certain jobs by the company. The production has been completely halted at the factory following the strike.

“The union and workmen of the company’s Bangalore plant have commenced a “tool down” strike from the first shift on September 28, 2011, without a prior notice. In view of the union’s illegal and unjustified strike, the management has decided to shut down plant operations for workmen from September 29, 2011. Efforts are on to resolve the matter and restore normalcy at the earliest possible date,” the company said.

About 2,500 employees from the main plant at Audugodi in Bangalore have gone on strike, protesting the move to outsource some work. “We have not caused any job loss and we are only redeploying the workmen after giving suitable training to them. The workers had not protested in the past for outsourcing work. This time they are protesting and it is absolutely surprising to us,” a company official told Business Standard.

In the past, nearly 1,000 workmen have been re-trained and re-deployed within the Bosch Bangalore Plant over the years with consequential benefits of increment and promotion. The matter has been referred to the labour commissioner in Bangalore and the hearing has been posted for October 3, the official said. The union of Bosch Limited — MEA (MICO Employee’s Association) declared a “Tool Down” strike at the Bosch Bangalore Plant on September 28, 2011, beginning with the first shift of production.

According to Bosch, to reduce costs to keep its prices at competitive levels, the Bosch Bangalore Plant Management has taken a decision to outsource certain non-core manufacturing and support processes, which is a normal industry practice followed by Bosch for many years. This decision has been taken after monthly meetings with its labour union — MEA.

Though the original plan would have resulted in the re-deployment of about 140 workers, it has now been scaled down due to the present slowdown. 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 an advance notice (mandatory as per labour laws) through a “tool down” strike.

This is the second disturbance at Bosch Ltd within six months this year. In March, production was affected at the plant for a couple of days over the demand for a wage increase, an issue which was settled amicably after Labour Commissioner intervened. In March 2010, around 4,000 employees of Bosch went on strike for a protracted period over the demand for higher wages and medical support during which the company is estimated to have lost nearly Rs 1,000 crore.