Bosch Group staff protest proposed SG division rejig

In the backdrop of German auto component giant Bosch Group’s plans to seek a partner for a joint venture or a buyer for its Starter Motors and Generators (SG) division globally, workers at the company’s Indian unit located at Naganathapura are protesting the ‘unilateral and unfair’ decision.

Briefing reporters here on Monday, MICO Karmikara Sangha Naganathapura (MKS-N) president S Prasanna Kumar said, “The unilateral decision taken by Bosch Board to look for a new partner or sell the SG division without consulting its 6,500 employees across 13 plants globally is unacceptable. The SG business should remain with Bosch.”

He added, “In India, 600 employees feel that the Bosch Board decision would have serious implications on the future of their families. Employees are not commodities, they cannot sell us. Engage us in the decision making process.”

The Naganathapura plant, located near Parappana Agrahara Central Jail, was started in 1989, producing spark plugs, starter motors, and generators.

“We urge the management of Bosch to initiate dialogue with all negotiating unions across the globe and explore retaining the SG business within Bosch Group. In case, the Bosch board management does not respond positively, our union MKS-N, in collaboration with workers at all 13 plants located in nine countries, will intensify the protest against the board decision,” Kumar said.

However, in a statement, Bosch said, “The company is convinced that the JV or a new buyer can further improve the division’s growth prospects in a market characterised by tough competition and cost pressure.” It said “the progress made so far is not enough for the business to have a successful future. The losses of past years run into many hundreds of millions of euros”. The division, with 2014 revenues of €1.4 billion, is part of Bosch’s Mobility Solutions sector, which last year reported revenues of €33.3 billion. The SG division develops and manufactures starters and alternators for passenger cars and CVs.

Kumar claimed that the only unit in India located at Naganathapura generated a turnover of Rs 1,000 crore for the last financial year. He said revenues had grown consistently from 2010 (Rs 380 crore), 2011 (Rs 560 crore), 2012 (Rs 813 crore), to 2013 (Rs 944 crore).