Bosch Limited, the subsidiary of German auto component major Bosch has announced that its Bangalore plant had concluded wage settlement for the period, 2013-2016 with workers union, Mico Employees’ Association (MEA) on December 8, 2014.
According to a company statement, with the signing of this settlement, the prolonged illegal agitation initiated by the union on September 16, 2014 came to an end. The union has agreed to accept Bosch’s last offered wage and benefits proposal that would enable the earning potential – the monthly cost to company – of an average associate to increase from Rs.64,000 to Rs.86,000, subject to working as per industrial engineering standards by 75 hours of work in an eight hour shift.
Dr Steffen Berns, Managing Director, Bosch Limited said: “I am pleased to see all our workmen resume production. Despite the adverse effect of the strike, Bosch has made a generous offer to its union and expects them to adhere to the agreed measures on productivity standards. We are convinced that our highest priority is to retain the trust of our customers and reinforce our image as a reliable business partner. Thus it is extremely important that we have been able to serve our customers’ demands throughout this extended illegal agitation. We will continue our efforts towards establishing a trustful collaboration with our associates and jointly finding a way to help the company in maintaining its competitiveness. This settlement is a step towards securing the future of our Bangalore plant. We would like to reaffirm our commitment to India and its strong growth potential.”
With this mutually agreed wage settlement, the company’s Bangalore plant will continue to be one of the best paymasters in the manufacturing and other comparable industries. Bosch has also offered to confirm 100 of the 370 temporary workmen at a new intermediate wage level despite the fact that in future it is likely to have excess manpower due to change in product mix.
“We would like to express our gratitude to the State Government of Karnataka, the Labour department and customers for their support throughout the settlement process. We also acknowledge the unrelenting efforts of the officials who voluntarily supported the production during the strike period, thus ensuring uninterrupted supply of products to our customers. Our commitment to customers is always paramount and we demonstrated the same by ensuring that the strike had minimal impact on our supply chain. The current wage settlement endeavors to prepare Bosch for being ‘future ready’ through implementation of sustainable measures to support the growing needs of the Indian automotive industry,” Berns added.