Employee strike at Bosch's Bangalore plant ends - Angel Broking

The tool down strike by around 2,500 employees at the Adugodi plant of Bosch in Bangalore has been called off. The strike which started after the first shift on Thursday, ended late evening on Saturday after the management agreed on certain demands of the Mico Employees' Association (MEA).

As per the agreement with the workers, the management has agreed to revoke the suspension of the workman and revise the incentive payment factor progressively. The workers have resumed the production at the plant from the night shift on Saturday. The employees at the plant were on a tool down strike following a suspension of the worker on the grounds of indiscipline. The company had termed the strike illegal as the Union did not serve a mandatory seven day strike notice to the management.

We see this as a positive development as management acted swiftly to resolve the crisis and reach an agreement with the Union. At Rs. 8,305 the stock is trading at 19.6x CY2014E earnings. We maintain our Accumulate rating on the stock with a target price of Rs. 8,889.

Source : Equity Bulls

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