Bosch loses $60.4m rev in Feb due to Bangalore plant strike

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Bosch loses $60.4m rev in Feb due to Bangalore plant strike

Bosch loses $60.4m rev in February due to Bangalore strike The Bosch Group has lost USD 60.4 million in revenue in February alone due to the strike at its factory at Naganathpura in Bangalore.

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Q: What kind of impact has it had on your production? What have been the losses you have incurred? We understand some key orders have been cancelled as a result of this standoff?

A: This lockout is just a day old. So personally not because of this but the workmen have resorted to an almost 30-35% reduction in production from February 12. So that has had an impact and we have lost orders from Suzuki worth Rs 30 crore, which is a permanent loss for us. Our supplies to various other customers are also hit.

Q: Is there a compromise in sight? Is there some middle ground on wage settlement that has been reached?

A: We have a meeting with the labour commissioner tomorrow and we would like to request the Labour commissioner to conciliate between us. We are able to discuss a fair settlement with the Union and we would like to give a fair raise. They are asking Rs 15,000 increase in their salaries. But the cost to company as of now for workmen who joins just out of national apprentice is around Rs 37,000-39,000 as it is. So we cannot afford another Rs 15,000.

Even doctors and engineers get entry level salary of Rs 18,000-20,000. So we are paying huge amount of salary. So economically the Naganathpura plant will not be viable if we give this much of a hike. So that is the problem and we will request the conciliation officer to bring sense to the other side.

We are prepared to offer a fair amount of increase and we want to be just with the employees and against their commitments of a few of our demands which we want to use the full capacity of the plant which is presently being used only by about 50%. We want it to be used at 100% capacity. We want the people to adhere to certain norms of discipline and work.