NEXT POWAI LEVEL PRODUCTIVITY COMMITTEE MEETING ON 13TH OCTOBER 1983

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).

10 Dec 1983

To:

Deputy General Managers (Mfg.)

SUB -     NEXT  POWAI LEVEL  PRODUCTIVITY  COMMITTEE MEETING ON   13TH OCTOBER 1983                                                                  

You must have already  received my earlier circular dt,  29th September 1983 regarding this meeting.

I  would earnestly  request  you  to attend  the  forthcoming meeting in view of the following:

1.           In the  very first meeting with  the President &  Gen. Secretary (BKS

Union - Sena Bhavan) on  the Charter of Demands on  24th February 1983, 

I had  emphasised the aspect  of almost stagnation Productivity at  Powai

in  most of our operations since 1979,  despite the Clause in the  Agreement

providing  for a  25 point  rise.  I had also mentioned in my  opening

remarks that arising out of  1979 experience an  attempt should  be made to       

make 1983 agreement,

'A post-performance reward' type agreement.

All of us collectively  need to impress this  upon the Union.

2.        From the  information  made available  by the  Finance Department, I

gathered  that both the  sales price and  the  transfer price  of  Powai 

manufactured  products during  the Budget year  1983-84  is likely  to be 

as  much as 10% lower from  the actual production attained during  1982-

83.     If  the  transfer prices  taken  for computing this are higher  than those

taken for 82-83, the actual physical output may  be even as much as 15%       

to   20%  lower  than   the  comparable   figures  for 1982-83.  If this is so,  it

is quite  serious'. As it  is,  I  have,  through  my  earlier  circular  already       

requested the  production managers  to present  at the 13th October  1983

meeting,  1982-83  achievements and 1983-84 targets  product-wise in  physical quantities. This   should' highlight   the   problems   of  demand        slackness.

While presenting these figures, we should  also try to highlight whether 

the 83-84  physical quantities  are expected  to be achieved with  the same

number  of man hours  or with reduced/increased  number of man  hours

thereby   highlighting   the  level   of  productivity expected.

I  belive your  participation  would  help  in  generating  a constructive  dialogue  on  what  steps  could  be  taken  to increase our operational  productivity at Powai in  the years to come and thereby increase our competitiveness.

H.C. PAREKH