The employees union of world's largest auto parts maker Bosch Ltd has declared “tool down” strike at its Bangalore plant to protest against the company's decision to outsource certain jobs.
The MICO Employee's Association went on the strike from Wednesday beginning with the first shift of production.
A company spokesperson said the decision to outsource jobs was taken to reduce costs for competitive pricing of its products. Terming the strike illegal, the spokesperson in a statement said the decision to outsource certain non-core manufacturing and support processes was taken after monthly meetings with its labour union.
Though the original plan would have resulted in the re-deployment of about 140 workers, it has been now scaled down because of the current slowdown in the economy. So far in the current year, only about 40 workers have been re-deployed.
The Bangalore plant employs about 2,500 unionised workmen. “The outsourcing initiative has not resulted in any job loss whatsoever and is a common practice resorted to by Bosch Ltd and the industry as part of modernisation to maintain a competitive edge and secure the future,” the statement said.
In fact, a settlement to formalise modernisation, automation, ancillarisation and outsourcing etc. was first signed between Bosch management and the union way back in 1992 itself.
In the past, nearly 1,000 workmen have been re-trained and re-deployed within the Bosch Bangalore plant over the years with consequential benefits of increment and promotion, the statement said. It said that Bosch is in talks with the union to stop the strike.