Progressive labour reforms key to take us to next level in India: Volkmar Denner

Interview with Chairman of the board of management, Bosch Group

The Bosch Group, the biggest global suplier of automobile components, has been facing labour unrest in India and wants the relevant laws changed. Volkmar Denner, chairman of the board of management, explains concerns to Mahesh Kulkarni. Excerpts:

What labour reforms would you like to have, given Bosch has seen worker issues quite frequently?

Bosch has close relations with workers in India. The current situation in Bangalore (workers on strike for 45 days over wage-contract renewal) is a concern. Our expectation is we will find an amicable solution soon. But labour reforms should address productivity improvement.

Will labour unrest affect investment plans?

We will continue to invest in plants in India. With the country headed for six per cent gross domestic product (GDP) growth next year, it offers us a good opportunity. The automotive industry is passing through a difficult situation but we expect growth to pick up next year.

We will continue to invest in India, provided the labour conditions allow us to be competitive. Labour reforms should address the competitiveness. We have invested a lot in five years. Our intention is to continue to invest here.

Are you meeting workers?

We are continuously negotiating with stakeholders and have communicated a lot to them. We are coming to an agreeable solution soon.

You have welcomed Prime Minister (PM) Narendra Modi’s Make in India campaign. This eases business?

You have welcomed Prime Minister (PM) Narendra Modi’s Make in India campaign. This eases business?
We support the announcement to boost manufacturing. Labour reforms are a fundamental precondition. Bosch has great strength, on which we will continue to build. There is our strong corporate culture and loyal associates.

As a globally leading supplier of solutions and technology and services, we will continue to offer beneficial solutions to improve the quality of people’s lives, in India and worldwide. With our global footprint, high quality and innovative strength, the prospects for our business are excellent — globally and in India. But it is too early to judge the effect of this campaign as it is yet to come into effect.

Why labour unrest keeps occurring in Bosch almost every year, in one or the other plant? What efforts have you made to prevent this?

We believe both the wages and benefits we give to workers are of the highest standards in the industry. We are doing everything to address the issue and amicably find a solution.

In which area the company intends to invest in India?

We are happy with the research and development (R&D) investment in India and we will continue to do so. We are investing in systems’ engineering and components’ development in Asian regions.

Our development centre for engineering and technology solutions in Bangalore is our second-largest worldwide. With 10,500 (R&D) engineers, we are committed to improving and developing innovations from India.