Bosch declares lockout at Jaipur unit

Lockout declared after workers proceeded on "illegal go-slow" action since March 19, reducing output by up to 70%

 

Auto component major Bosch has declared a lockout at its Jaipur plant due to ongoing worker unrest in the facility.

The plant, which has a history of labour issues, was also shut for a day last month on account of a day-long strike by the labour union over wages.

“The company’s management has taken a considered decision in declaring a lockout against the labour union and workmen of the company’s Jaipur plant indulging in a go-slow action, effective April 5,” Bosch Ltd said in a filing to the BSE.

The lockout was declared after workers union proceeded on an “illegal go-slow” action since March 19, reducing output by up to 70 per cent, it said. Subsequently since April 2, the union has been on an illegal hunger strike, the company added. “The company’s management has reached this decision after careful examination, keeping in mind the safety of its employees, the interests of its customers and the overall impact, such a severe go-slow would have on the Indian automotive industry,” it said.

Bosch also said it does not expect an immediate impact on its deliveries to customers because of available stocks as well as production from its officers who are trained to work in production.

Elaborating, the company said  wage settlement negotiations for the period June 2013-May 2017 have been on for more than 20 months, including intense conciliation meetings supported by the joint labour commissioner-cum-conciliation officer of Jaipur region.

The Rajasthan government has referred the matter to the industrial tribunal, Jaipur for adjudication, it added.

Bosch Ltd manufactures various auto components, including fuel injector pumps and distributor pumps (VE pumps) at the Jaipur plant.

The company has a history of labour issues at its two plants in Jaipur and Bengaluru.

Last year, workers at the company's Bengaluru plant had struck work for over three months over wage settlement.

Later on, Bosch Group Chairman of the Board of Management Volkmar Denner had stated that repeated incidents of labour unrests could hurt investments in India.

Bosch shares were trading 1.02 per cent down at Rs 25,300 apiece during pre-close session on the BSE.