Bosch warns of lockout at Bengaluru

Automotive technology major Bosch Ltd on Thursday said it may be 'compelled' to declare a lockout at its main manufacturing unit in Bengaluru, three days after it shut operations at Naganathpura plant.

"The company may be constrained to declare a lockout if we don't have normalcy returning," Bosch senior vice president, finance and administration, diesel system, Soumitra Bhattacharya said while referring to the Bengaluru facility which has resorted to 'go slow' tactic.

"We do not want a lockout, but we may be compelled to if the union and associates do not go back to normal production," he said describing the lockout as the last resort.

The union has been on 'go slow' strike since February 12 resulting in 40 per cent reduction in production, Bhattacharya added.

The company is incurring a loss of Rs 1 crore (Rs 10 million) per day at the Naganathpura plant and Rs 3 crore (Rs 30 million) at the Bengaluru unit. Its clients are incurring a total product turnover loss of Rs 1,000 crore (Rs 10 billion) monthly, he said, adding that the original equipment manufacturers were losing out and were not able to sell.

The clients so far, he said, had been 'extremely supportive and understood what is happening'. Some of its prominent customers are Maruti Suzuki, Mahindra and Mahindra, Volvo, Ashok Leyland and TVS.

Bhattacharya said that the management was willing to lift the lockout if the workers were ready to go back to 'original production level'.

"We want negotiations to continue, we want to give a fair settlement as per the industry standards," he said.

The union has been demanding Rs 15,000 more per employee on their last revised salaries. With the cost to the company working out to be Rs 36,000 on an average for employees of 10 years or more, such an increase was unacceptable and unfair, he said.

Last review of wages was done in December 2008 which was Rs 3,600 more compared to the wages then. Technically the negotiations for fresh wages had begun in July-August 2009, which was normal span for discussions.

"We are willing to give a fair and good settlement equivalent to industry cum region standards," he said.

The Naganathpura plant employs around 715 permanent employees, while there are 2,400 permanent employees at the Bengaluru unit.

The company had declared a lockout at Naganathpura plant as a result of workers resorting to physical intimidation of managers and officers of the plant during their 'go slow' strike and subsequent tool down strike.