Sunday 23 December 1979

COMMU-TIES

Synopsis: Communication For Productivity

Letters written to some 7500 Workers / Managers / Union Leaders, following a period of strike / Go slow / Murders (1979 - 1987), at Mumbai factory of Larsen & Toubro Ltd. This direct / open / honest communication led to a remarkable atmosphere of trust between Workers and Management, which, in turn, increased productivity at 3% per year (ave).

23 Dec 1979

To;

Deputy General Managers (DGMs)

"COMMU-TIES" - Yes

"COMMITTEES" - No

We already have many Committees.

Perhaps too many.

So I would be the last person to suggest one more.

An anthropologist discovered existence of 'Committees' during the Indus Valley civilization.

While digging at "mohenjo-daro", he unearthed a room-full of chairs and cups of tea - "Come-meet-tea"! (Since then civilization has made great strides in this art of doing nothing, by introducing coffee.' - it keeps you awake !)

But then "Mohenjo-Daro' in B.C. 3,000 had fewer walls than Powai has in 1979 A.D. - except that these are 'invisible' I (to frustrate the anthropologist of 4,000 AD'.?)

Non-believers, kindly study Annexure 'A'

That's right. I meant 'Barriers to communication'.

So we should have some more 'commu-ties' - communication ties.

These, I call, 'holes-in-the-walls. ' Our windows to the 'worlds'.

The 'worlds' of

- Managers

- Officers and Supervisors

- Technical and Clerical staff

- Workmen and Union

Under Phase I (OPERATION commu-ties?) we have already made a 'beginning with the

"PRODUCTIVITY COMMU-TIE"

at 4 levels

Under Phase II, I believe we should establish a regular channel of communication with the Supervisors and Officers. They are there to implement Company Policy - even help frame it (Supervisory participation in Management?). We, the managers, should understand them better - as a group, -their feelings/difficulties/suggestions. They must understand better, the managerial directives and the inconsistencies of managerial action - whether real or apparent.

With the foregoing objective in mind, I met 17 of them on 21st inst. The response was very encouraging and constructive. I felt that a major source of energy has remained untapped in this age of energy-crisis 11

They would like to meet us once a fortnight (at least initially). Say at 4.30 p.m. (G-4 Conference Room) on

- 4th January '80

- 17th January '80

- 31st January '80

We may call this "INNOVATION COMMU-TIE'. Whether innovative communication will take place or not will depend upon whether you are present or not. Therefore, I urge you to remain present and help bring down the walls!

Then someday we will sit down and think about Phase III.

H.C. PAREKH

Sunday 16 December 1979

THE NIGHTMARE YEAR

Synopsis: Communication For Productivity

16 Dec 1979

To:

Dear friends

THE NIGHTMARE YEAR

The year 1979 is drawing to a close.

It has been a bad year so far. What little is left does not appear all that cheerful. The future looks as bleak as a Hindi film does around interval! (except that in the case of a Hindi film, your eight-year old can predict 'The HAPPY End' rather accurately !)

We have seen some bad years before. What is so special about 1979?

FIRST:

The Management and the Union signed a 4-year Agreement in January 1979, that gave an average wage-rise of over Rs 200 per month to the workmen, resulting in a recurring annual expenditure of Rs 125 lakhs. Then there was the one-time lump sum payment of Rs 90 lakhs.

Now there is nothing basically 'wrong' in such a big wage-increase, if it were to be neutralised by a corresponding improvement in the labour-productivity as incorporated in the Agreement. Not only labour-productivity remained at the same level throughout the year, it went down in some shops !!

This is what makes 1979, a 'bad' year !

SECOND

The labour-cost further kept on rising throughout the year. The maximum DA which was Rs 1145 in January rose to Rs 1305 in November - a rise of Rs 160 so far.' D.A. rise alone has cost the Company around Rs 90 lakhs during the course of the year.

With one more month to go, 1979, might yet break the previous record !!

THIRD:

Most of the raw materials and components are costing us today, between 25% to 50% more than what these cost us 11 months ago. Shortages of raw materials caused loss of production and termination of—'Temporaries' .—And—this—could happen again and again !!

Isn't this 'bad' enough?

FOURTH:

A company needs borrowed money to run the business. When labour-cost and materials-cost go up sharply, we need more money. And the borrowed money itself has become more 'expensive ' because banks increased the rates of interest.

How bad can one get?

FIFTH :

Most of our business is a 'Fixed price' business. Today, we are executing orders which were booked by us 12/18 months ago at 'firm prices'. With all costs rising sharply, our 'margins ' are shrinking fast.

This is what makes 1979 a bad year.

SIXTH;

Maharashtra is going through one of the worst POWER CUTS, ranging from 35% to 55% (and 100% for 5 days in May 1979). We have survived so far, on our own generated power - which costs us 6 times as much. But if diesel supplies go down further, (current stock is just enough for 7 days) the first to be affected would be the Company's transport.

Can we take anything at all for 'granted'?

FINALLY:

1979 began with all outstanding issues between the Union and the Management peacefully settled. 7,000 people of Powai paid a heavy price in 1977 and thought that the worst year in L&T's history had come and gone.

Apparently some people have thought otherwise and would like to make 1979 THE WORST YEAR I The 'Go-slow' agitation is crowning the nightmare of 1979.

At a time when we should all be unitedly fighting the 'evil' forces of the ECONOMY, through higher production, do we have to make matters worse, by inflicting wounds on ourselves by resorting to 'Go-slow'?

When you go home today, ask your eight-year old what he thinks 1980 would be like - for us and for our families.

H.C. PAREKH

Monday 10 December 1979

DO NOT ROCK THE BOAT

Synopsis: Communication For Productivity

10 Dec 1979

To:

Dear Co-traveller

DO NOT ROCK THE BOAT

POWAI WORKS is like a boat. You are aware that this boat has not been sailing smoothly of late. Some people are trying to drill holes in it, little realizing that if the boat goes down, they go down too ! - perhaps before the boat goes down !! What else is 'go-slow' agitation?

Over the years, our boat has sprung a few small leaks and we should all be busy bailing out water and sealing these leaks - not drilling holes!! Future of 7,000 people (and of their families) is at stake. A few persons (whose own futures do not ride the boat) are taking dangerous liberties with the future of 7,000 workmen. Can this be allowed?

To agitate peacefully and democratically for a 'just' cause, is the birth right of the working class. No enlightened Management will deny that, and L&T Management has repeatedly demonstrated that it is an enlightened Management.

But, is the present 'go-slow' for a ' just ' cause?

At a considerable sacrifice to the L&T workmen, the BKS Union got the Management to agree to refer the cases of 8 workmen to the Labour Court. now the workmen are being asked to make further sacrifices. For what? Was the earlier sacrifice all in vain? You be the judge.

Our Management ''has a reputation of honouring an understanding, if it was given. The one and only understanding is the agreement signed by the Union and the Management on 17.3.1978. Management has every intention of honouring the same. It is hoped that the educated and intelligent workmen of L&T will also uphold this democratic tradition and honour the agreement by immediately withdrawing the - GO-SLOW agitation, before this disease spreads like plague and consumes our futures !!

H.C. PAREKH