The Indian unit of Robert Bosch GmbH, India’s Bosch Ltd. Informed on Saturday, that the lockout on their Naganathapura plant which is located near Bangalore, has been lifted. The workers of this plant were on a strike since last Monday.
The company issued a statement in which it informed that the decision will come into effect immediately and added that the decision was taken after a meeting between the company and state labor official. The company management was advised to lift the lockout and the plant’s recognized union was asked to restore work.
Bosch took the union’s assurance in consideration and decided to end the lockout, as there are “pending discussions on all issues of Charter of Demands, submitted by the union, for an amicable settlement.”
Bosch makes auto parts like generator starters, spark plugs and alternators for domestic auto industry and also exports them to Bosch’s parent group’s companies all over the world.
The workers at Bosch’s Naganathapura and Bangalore factories were demanding an increase in their salary by 45% which is right now Rs. 36,000. What is worth mentioning here is that Bosch is not the only auto parts manufacturer in India that has got into troubles with its labor. In 2009, there was one and half month long strike in Rico Auto
Industries limited which forced Ford and General Motors to close factories USA as it created a shortage of auto parts. Presently, the Indian unit of Denso Corp. which is a Japanese company, is having trouble with its labor.
These issues have come to light in a period where there is an increase in demand of auto parts in India due to growth in the industry. Many international automobile makers are also setting up their plants in India and this has also contributed to the increase in demand of the automotive parts.
In 2009, the nets sales of Bosch were Rs. 47 billion. The company has around 6,700 workers and also runs factories in Goa, Jaipur, Nashik among other cities. None of the other factories were affected by the current lockout.
The negotiations between Bosch and workers were going around for the last 7 months as workers had been demanding a salary hike. Their wages were hiked last time in 2005 when the company gave a Rs. 3,600 hike in the monthly salary to it workers. But that settlement expired on 31st December, 2008.
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