Bosch threatens second lockout as workers remain adamant

Bangalore, March 11: Automotive components major Bosch Ltd Thursday threatened to declare lockout at its main plant in the city as its agitated workers remained adamant over wage revision and healthcare benefits.

"We have served notice to the employees and their union to either restore normalcy or face lockout even at the Audugodi plant any time," Bosch vice-president Soumitra Bhattacharya told reporters here.

Mico Karmika Sangha (Mico Trade Union) general secretary K.N. Umesh told IANS that the company threatened to declare lockout at its main plant March 15 despite workers holding reconciliation talks with the management through the labour commissioner on the issues of dispute, including providing healthcare benefits to the employees and their families.

"The company declared lockout unilaterally at Naganathapura facility late Monday without serving the mandatory notice to us. Now it is threatening to close the Audugodi plant where about 2,400 people are working, instead of responding to our fair demands," Umesh said.

The 57-year-old Indian subsidiary of the German behemoth has been embroiled in a running battle with the union representing about 3,500 employees working at its two plants in this tech hub since January 2009 over a new wage accord after the previous accord expired December 31, 2008.

Bosch India manufactures spark plugs, alternators and generator starters for the Indian automotive industry and exports to its parent group firms worldwide.

"Even after 13 rounds of discussions during the last 14 months, the management has refused to meet our demands, which is based on the consumer price index (CPI) and high profit the company made in fiscal 2008 and 2009 despite slowdown," Umesh recalled.

After final round of talks failed last month, the workforce at both the plants have been on a go-slow agitation since Feb 12, demanding an average Rs.15,000 hike in their wages per month in view of the rising inflation and high cost of living in an expensive city like Bangalore.

"The management initially offered a measly Rs.500 hike after the three-year wage accord of 2005 expired by 2008 and raised it up to Rs.2,800 subsequently -- though in the Bosch group worldwide, it is only the Indian subsidiary that has been consistently making profits every year, while other plants in the overseas have been reporting losses," Umesh pointed out.

Bhattacharya said the company was incurring a loss of Rs.4 crore (Rs.40 million) since Tuesday when lockout was declared at Naganathapura plant where about 1,000 people are employed.

"More than us, the automobile industry comprising OEMs (original equipment manufacturers) and ancillary units is estimated to lose Rs.1,000 crore (Rs.10 billion) in combined turnover if lockout at Naganathapura continues and if we are forced to declare lockout at Audugodi," Bhattacharya noted.

Umesh, however, said: "We were patient and restrained from going on strike or tool down for over 12 months as did not want to disrupt production at a time when the industry was reeling under global recession and slowdown in the Indian economy. When orders picked up during the third and fourth quarter of 2009, our workers exceeded production targets up to 130-140 percent."

Noting that production declined by 40 percent this week and sales valued at Rs.120 crore (Rs.1.2 billion) were hit, the company said it was unfortunate the workforce had resorted to go-slow and tool down when the order book was looking up following a revival in the automobile sector during the last three months.

Bosch's OEMs include Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Ford, Ashok Leyland, Kirloskar, Hyundai and TVS Motors.

"We are willing to lift the lockout at Naganathapura, provided the employees restore normalcy and agree to production schedule," Bhattacharya added.

Of the four major plants in the country, the two Bangalore plants account for 55 percent of the company's production and sales turnover, which was Rs.4,750 crore (Rs.47.5 billion) in calendar year 2009.

The other two plants are at Nashik in Maharasthra and Jaipur in Rajasthan.