The ongoing dispute between workers and management at two of Bosch Ltd’s plants in Karnataka has cost the automobile industry Rs 1,000 crore, a company official said.
Bosch, which supplies crucial fuel and ignition technology products and services to carmakers and the defence sector, is itself taking a hit of Rs 4 crore per day.
Its clients include Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra and Volvo, among others.
“All our original equipment manufacturers (OEMs) are under tremendous pressure. In the past one month, they have faced a sales loss of Rs 1,000 crore, while we are losing Rs 1 crore per day because of the Naganathpura plant shutdown and Rs 3 crore per day due to the go-slow at the Bangalore plant,” said Soumitra Bhattacharya, senior vice-president.
The two plants contribute around 55% of Bosch’s total production in India.
The Bangalore facility makes common rail and diesel fuel injection systems, while the Naganathpura unit makes generators and starters.
Strife started a month back, when the wage revision of workers, which takes place every four years, came up for negotiation.
The number of workers employed at the Bangalore plant, including temporary ones, is around 3,200, while at Naganathpura it is775.
The company declared a lockout at Naganthpura on March 8. Production had started to slow since February 12 before it stopped.
The company declared a lockout at Naganthpura on March 8. Production had started to slowsince February 12 before it stopped.
Bhattacharya said before the lockout, workers had gone on a ‘go-slow strike’ and ‘tool-down strike’ at both the plants which led to a 40% drop in production.
Bosch is now considering downing the shutters of the Bangalore plant due to the deadlock in talks with workers, who are adamant on their demand.
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