PRODUCTIVITY

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).

20 Feb 1987

To:

Mr. S.V.Naik

General Secretary

Bharatiya Kamgar Sena

L&T Unit

Dear Mr. Naik :

SUB : PRODUCTIVITY

In the Settlement dated April 11, 1984, your Union and the Workmen had committed to make improvements in productivity, efficiency and quality,  in every possible manner. The Union and the Workmen had further agreed and undertaken to achieve within three months of signing of the Settlement, and to maintain the improvement of at least 25% over the productivity levels achieved during the currency of the 1979 Settlement In all areas of operations. For this purpose, the Company had furnished to the Union (vide my letter dtd. April II, 1984) statements showing productivity levels achieved during the currency of the 1979 Settlement.

I have now pleasure In forwarding to you what we have been able to achieve so far with the co-operation of the Union. I enclose herewith statements received from the Managers of -

(a)    Switchgear Standard Products operations.

(b)    Switchboards operations.

(c)     P-Pack operations

(The statement from Group II is expected to be ready within a week's time and will be directly forwarded to you by Mr .P.M. Mehta).

These statements show what we have managed against the target of 25%.

There can be any number of reasons why the actual achievements. In most cases, are falling far short of the targets. The question of apportioning the blame to a side does not arise because I have repeatedly stated my position that in the matter of productivity there can be no sides ! It is futile to talk of who could or should have done what. The most important thing Is to have a continuous on-going dialogue on the subject with the concerned Foremen/ Managers. Some problems can be beyond the scope of all of us at Powai but these. I

feel are few. The majority of the problems hindering growth of productivity I believe are within our own control and must be solved In the spirit of constructive co-operation and if it is futile to talk of managerial prerogatives it would be equally futile to talk of workers' rights. We must get everyone involved and make them real so the consequences of Increases In costs without more than matching increases in productivity.

By a copy of this letter I am requesting all Managers to -

(a)      Ensure employee participation thru on-going dialogue on the subject of increasing productivity.

(b)      Develop productivity indicators wherever these do not exist so that during the next round of negotiations we could have not only a meaningful data base but meaning­ful targets also.

With regards,

Yours sincerely

H.C. PAREKH