Auto components maker Bosch Chassis Systems India has signed a wage agreement with the Bosch Chassis Systems Employees Union, which ensures a minimum 8% to a maximum 10% annual wage hike for workers during the agreement period irrespective of the inflation levels at that point of time. The new wage agreement will be effective from January 1, 2020, and valid till December 31, 2023. Workers at Bosch will be getting a hike of around Rs 20,300-23,000 by the end of 2023 to take their wages to Rs 60,000-80,000 levels, depending on the number of years with the company.
Negotiations have been going on between the management and the union at the Bosch plant at Chakan in Pune for the last 18 months. Manoj Patil, general secretary of the Bosch Employees Union and Shramik Ekta Mahasangh, said: “With this agreement, we have worked out a new formula which fixes lower and upper limit of annual wage hikes and this will benefit the company as well as the workers,” he said.
With this agreement, the company has clarity on its labour cost while workers get some protection from inflation. As per the agreement, even if the inflation rise is less than 8%, there will be a salary hike of 8%, but if inflation rose more than 10% per annum, the hike will be capped at 10%. It will be based on the actual inflation if it is between 8-10%. There are around 190 permanent workers who would benefit from this agreement.
With this agreement, Bosch will be part of the MNCs in the area such as Sandvik, JCB, Alfa Laval Volkswagen, Mercedes-Benz and John Deere which have traditionally paid higher wages with Thermax among the few Indian companies in this league of good paymasters. However, flexible workers now account for around 60-80% of the workforce in the Pune industrial belt and they do not benefit from these wage agreements.
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