Bosch says to reopen locked Indian unit after pay dispute

BANGALORE , India (AFP) - German engineering giant Bosch said Friday it would re-open a plant in southern India where workers were locked out by management this week to protect machinery during a pay dispute.

A unit of Bosch India on the outskirts of the IT hub of Bangalore had been closed since Monday night when the company locked out workers after they "resorted to physical intimidation" of managers.

"We have decided to lift the lockout at Naganathapura plant as the employees have agreed to return to work and restore normalcy," Bosch India spokesman Sanjay Chakravarty told AFP.

The move to restart the unit follows an agreement to end the lock-out agreed between the management and the Mico Karmika Sangha or Mico Trade Union reached in the presence of the state labour commissioner E. Narasimhah.

"Discussions on a revised wage accord will continue with the union. Our priority is to get the plant activated from Saturday first shift at 6.00 am," Chakravarty said.

Bosch had earlier Friday withdrawn a threat to declare a lockout at a second, larger plant in Bangalore where 2,400 workers have staged a "go-slow" protest this week.

The group manufactures spark plugs, alternators and generator starters for the Indian automotive industry and exports to its parent group's firms worldwide.

Tensions over wages have been running high since last January with union leaders representing the 3,500 workers in Bangalore demanding a salary hike after the expiry of an old contract in December 2008.

The company's two units in Bangalore account for 55 percent of the total production and sales turnover of 47.5 billion rupees (989 million dollars) in the calendar year 2009.

There are two other Bosch facilities in western Maharasthra state and northwestern Rajasthan.