6 April, 2010Bosch workers in India gain wage rises in renewed four year agreements after go-slow protest disrupts the auto industry dependent on critical parts from the plants.
INDIA: Workers and their unions at two Bosch plants in India secured wage increases in renewed four year agreements after they staged go-slow protests, which saw a 40 per cent drop in production at the plants.
The workers at the Naganathapura plant on the outskirts of Bangalore and their union, Mico Karmikara Sangtha-Naganathapura, secured an agreement on March 25 with Bosch which includes a raise of Rs8,000 (USD180) per month in the cost to the company to the 715 workers at the plant. The four year agreement also allows for the salary package to come into retrospective effect from January 1, 2009.
The day before, on March 24, workers at a Bosch plant in Audugudi, Bangalore, represented by the Mico Karmika Sangha union, also reached an agreement with the company for a raise of Rs8,000 (USD180) per month to the 3,500 workers employed at the plant for the same time period.
The workers at both plants launched a go-slow strike from February 12, 2010 demanding an increase of Rs 15,000 in their monthly salaries and medical facilities to their dependents among other benefits.
As a result of the strike, according to local press reports, the company saw a 40 per cent drop in production causing disruptions in the auto industry, which is dependent on critical parts from the plants.
Bosch India manufactures spark plugs, alternators and generator starters for the Indian automotive industry and exports to its parent's group firms worldwide. Bosch's clients include Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Ford, Ashok Leyland, Kirloskar, Hyundai and TVS Motors.
Of the four major plants across the country, the two Bangalore plants account for 55 per cent of the production. The other two plants are in Rajasthan and in Maharasthra, where another wage dispute was resolved in November 2009 (see link to previous news item on IMF website).