Bosch, one of the country?s largest auto component manufacturers and a subsidiary of Germany-based auto component giant Robert Bosch, declared a lockout at its Naganathpura production plant near Bangalore.
The company has shut operations after the workmen resorted to a flash strike and assaulted an officer over wage revision. The immediate impact of the lockout is on a Rs 30-crore order from Maruti Suzuki, which the company has lost while orders from OEMs like Tata, Hyundai, Ford and M&M are also under threat.
?The company has decided to shut down considering the safety of employees, machinery and other installations,? said N Umesh, vice president of Bosch?s Naganathapura plant.
The impact of the lock out could also affect the company’s main auto component manufacturing plant in the same city at Adugodi. Umesh said workers are in a `go slow’ mode in Adugodi plant too since February 12. Wage negotiations are on at the Adugodi plant, that employs about 4,500 workers. It manufactures common rail injection system, fuel injection pump, power tools and elements for auto industry. Vaishali Jajoo, an analyst attached to Mumbai-based broking from Angel Securities told FE that she did not expect the lock out to continue for a longer time. “The company may incur losses of Rs 1-Rs 1.5 crore per day if they continue with the lock out,” she warned. Moreover the company may not have sufficient inventory as they have already resorted to production cuts last year due to recession. The Naganathapura plant was set up in 1989 and since then it has witnessed four strikes, but however this is the first time the company has decided to go in for a lock-out. Industry watchers feel that the lock-out may lead to governmental intervention as Bosch is one of the oldest companies in Bangalore. It was was earlier called Mico Bosch. Already the matter has been escalated to the labour commissioner’s office. Bosch Ltd has five auto component manufacturing units in India. Other than the two in Bangalore, it has one each in Goa, Jaipur and Nagpur. The company’s roll call includes more than 10,000 employees. The Naganathapura plant was prey to employee agitation for the past one month.
The company manufactures starters, generators, spark plugs and alternators at its Naganathapura plant for OEMs and the aftermarket sector. The plant has 900 employees including 715 workers serving at the shop floor, who have initiated negotations around wage revision.