2a.

Although technical excellence is demonstrated by multinational companies in India, there cannot be

conclusions about ‘best practices’ since many of the managerial actions have led to poor employee relations.
Identify the key actors in the case whose actions led to IR problems at Bosche. What are other reasons for
poor industrial relations at MNCs like Bosche.

Answer

key actors in the case whose actions led to IR problems at Bosche:

The Mico Bosch Labour Union (MBLU), Jaipur Plant:

 Disparity in the wages causing indifference between the regular and the contractual employees
 Market was down in 2008. The main reason of this strike can be managerial actions towards
employee union members or the union recognition issue. Also, the unions members used violent
ways during the strike. Since the wage’s agreement was valid, so this strike was not valid as told by
court
 Main reason for 2009 was that management didn’t fulfill its promises to increases its wages as
agreed (economic recession may be one reason)
 The Management looks to not build the relation with union and bypass them and raise the concern
with Labor Union Rajasthan. This highlights the poor communication problem with the Bosche
management. The same could have been a reason for the uprising at the other Bosche owned plants.
Robert Bosch India Chassis Systems Ltd (RBIC):
 The wage for trainees and contractual employees working in dangerous jobs like metal pouring
received very less wages
 Previously made agreements and trust was violated by the management, which is very important to
keep relations and sense of a joint identity as a company.
 Again, a complaint was lodged against the unions failing to understand the problems of the
contractual workers.
Bosch Limited, Bangalore declared a ‘Lock Out’ at its Naganathapura Plant:
 The Management was again not looking for maintaining proper communication with the union and
no conclusion was reached.
 Management - failure in negotiation, asking managers to man the assembly line
 Union - physical intimidation of managers and officers of the plant

Other Reasons of poor IR at Bosche

 Intolerant attitude towards the workers on the part of management.

 Lack of trust and insecurity in unions towards management decision (e.g. Brembo transfer)
 Wages not increased as agreed (As in case of Brembo & Bosch in Pune location)
 Unhealthy working conditions
 Indiscipline by workers by threatening managers for entering in office
 Lack of human relations skill on the part of supervisors and other managers.
 High desire of workers for higher wage increase and the corresponding desire of the employers to
give as little as possible.
 Inadequate welfare facilities (like inadequate medical facilities for family members)
 Unfair labour practices, like victimization and undue dismissal.
 General economic such as less demand in market for business (2008 recession time), which can
build pressure on management to not increase the manpower cost.
 Lack of transparency
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