Dialogue with employee representatives continued
- Just under 2000 demonstrate outside Bosch HQ
- Board of management members meets with employee representatives
- Greater growth and improved regional presence can ensure future survival
On Thursday, July 2, 2015, employee representatives organized a demonstration outside Bosch headquarters in Gerlingen. It was held to protest the planned realignment of Bosch’s Starter Motors and Generators division. On June 9, 2015, the company had announced its plans to find a partner or buyer for the division. According to official estimates, the demonstration was attended by just under 2000 people.
In a meeting with employee representatives, Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH, and Christoph Kübel, the director of industrial relations, explained why the planned realignment was necessary. They also expressed sympathy for the demontsrators’ reactions. “We take our responsibility for our associates very seriously, and so this decision was not taken lightly. But we firmly believe that the division’s future survival can only be secured over the long term together with a partner or buyer,” Denner said. “Naturally, we have a responsibility toward the Starter Motors and Generators division, but also toward the company as a whole. We have to secure its future existence.”
Contructive dialogue between company and employee representatives
At this afternoon’s meeting, the company agreed to consult openly with employee representatives about the realignment and how it affects employment. “Any steps we take will be characterized by fairness and a sense of responsibility,” Kübel said. “If there should be a definitive transfer to a new company, associates will know in advance who the potential buyer is. This is a sign of openness and transparency.” For Kübel, the same considerations guided the company’s decision to inform employee representatives and associates about the planned relaignment at an early stage. Today’s meeting, he said, had been correspondingly constructive, and formed an initial basis for further discussion about employment conditions and job security. Kübel added: “What concerns us is the long-term viability of the Starter Motors and Generators division and the jobs that depend on it.”
Greater growth and improved regional presence to ensure future survival
There is considerable overcapacity in the market for starter motors and generators. The result is considerable cost and competitive pressure. In addition, technological developments are putting starter motors and generators under increasing pressure. Downsizing – smaller engines with smaller starter motors – is reducing value added. This will lead to a market shake-out, in which only a leading market position will offer long-term prospects of success and growth. Together with a partner or buyer, the Starter Motors and Generators division can use consolidation effects to significantly reduce its costs, while a stronger regional presence will improve its market position. This applies above all to the growth markets of Asia and North America.
Turnaround efforts have produced results, but will not be sufficient long term
The Starter Motors and Generators division has successfully managed to transform itself over the past few years. Recently, it has significantly improved its competitiveness and performance. This is also due to the hard work of its associates. But regardless of this, it was not possible to achieve a market position that would secure the business long-term success in a market shake-out.
By the end of 2015, the division is to be carved out and made a legally independent entity. In addition, Bosch intends to look for appropriate partners and buyers with a clear concept for taking the business forward and securing its long-term future.
