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Bosch and Brembo workers in India make gains

4 November, 2009Strike ends at Bosch and Brembo plants in India, as regular workers and trainees make gains, however the re-employment of contract workers continues to be the subject of a legal struggle.

INDIA: After 85 days of united strike action by regular workers, trainees and contract workers at the Bosch and Brembo plants in Pune, India, an agreement was reached ending the strike.

The workers went on strike on July 18 demanding the implementation of pay rises stipulated in the 2007 collective bargaining agreement. Significantly the workers' demands also included equal pay for equal work with precariously employed workers, trainees and permanent workers in unity in the fight, which is led by the Bosch Chassis Systems Kamgar Sanghatana (Employees Union).

The strike at Bosch and Brembo was called off on October 10, after an agreement was reached between the union and management before the Commissioner of Labour on October 9. The terms of the agreement include:

  • Ending of the strike,
  • Continued legal process of abolishing the contract labour system,
  • Immediate resolution of the lack of implementation of the collective agreement at Brembo,
  • Mutual discussions to resolve the lack of implementation of the collective agreement at Bosch, and
  • An assurance for a fair and without prejudice inquiry against the General Secretary and five union members.

Since this time, the managing director and three vice presidents at Bosch have resigned and the head of manufacturing was transferred to Delhi. In addition, all the workers at Brembo have been paid 50 per cent of the wages owed in arrears and are currently negotiating for the remaining 50 per cent. At Bosch wages for the third year have been paid and negotiations for the payment of arrears from the second year are continuing. Disciplinary charges against the General Secretary and five other workers are pending.

Unfortunately the contract workers remain unemployed and outside the factory gate awaiting a judgement from the Industrial Court. As the law regarding the absorption of contract labour as regular workers is very limited and narrow in scope the contract workers may result in losing their jobs as a result of this struggle.

The struggle at Bosch and Brembo is having an impact on the whole Pune industrial region, with workers reporting that all companies in the region are now strictly implementing the statutory provisions, such as minimum wages, retirement provisions, health insurance and overtime facilities.

"This strike was very significant in the region. For the first time we saw regular workers and contract labours fighting in unity. Unfortunately the union had to take a decision to return to work leaving the fate of the contract workers up to the courts," said IMF regional representative Sudharshan Rao. "Let us hope the leadership comes out with some solution through negotiations with the management in support of the contract labourers, since the process of abolition of contract labour is positioned strongly in the Industrial Courts," he added. 

During this dispute, IMF affiliates in Italy, Germany and South Africa with members employed in Brembo and Bosch sent letters of support to the workers and spoke with their own local management about the case in India. In addition the Volkswagen Global Works' Council intervened via a VW plant in Pune that is supplied by the Bosch plant.