Bosch’s Bengaluru plant management has agreed a wage settlement for 2013-2016 with its union the Mico Employees’ Association (MEA).
“With the signing of this settlement, the prolonged illegal strike called by the union on 16 September comes to an end,” the supplier said.
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“The [union] has agreed to accept the company’s last offered wage and benefits proposal that would enable the earning potential – the monthly cost-to-company (CTC) – of an average [worker] to increase from INR64,000 (US$1,032) to INR86,000, subject to working as per industrial engineering standards for 7.5 hours of work in an eight-hour shift.”
“I am pleased to see all our [workers] resume production. Despite the adverse effect of the strike, the company has made a generous offer to its [union] and expects them to adhere to the agreed measures on productivity standards,” said Steffen Berns, managing director of Bosch.
“Bosch is convinced that its highest priority is to retain the trust of its customers and reinforce its 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 strike. The company will continue its efforts towards establishing a trustful collaboration with its [workers] and jointly finding a way to help the company in maintaining its competitiveness. This settlement is a step towards securing the future of our Bengaluru plant. We would like to reaffirm our commitment to India and its strong growth potential,” Berns added.
The company has also offered to confirm 100 of 370 temporary workers 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.
“The company would like to express its gratitude to the state government of Karnataka, the labour department and customers for their support throughout the settlement process. The company also acknowledges the unrelenting efforts of its officers who voluntarily supported the production during the strike period, thus ensuring uninterrupted supply of products to its customers [so]… the strike had minimal impact on our supply chain,” Berns said.
