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).
5 Mar 1987
Roti, Kapada, Makan
" Why does the company not giving Makans (Houses)- or at least housing-loans to the employees?"
" Why was Powai-East land converted from "Housing-Project" to " Factory-Project?"
During the last 2 months alone, employees (and even their wives!) have asked me these-and similar-questions on the following ocassions :
My group-meetings with Shop-Reps
Meeting with all the Shop-Reps
a. at Lonavala - 20th Dec 86
b. at Powai - 16th Feb 87
Worker Education classes (everyone of these for last 5 years)
Meeting with Union Jt. Sec 5/2/87)
Meeting with wives of Officers (11-01-87)
Works Committee Meetings (Several)
I have answered :
1. It is beyond the Company's financial capacity to either provide houses (or housing loans )
A small flat of 350 Sq. ft, today costs upward of Rs. 2 lakhs. Not everyone
is satisfied to move into such a small flat. Some want 500, 700 or 1000 Sq.
ft.-depending upon whether he is
· a shop - floor worker
· an Office worker
· a Supervisor
· a Manager
So we can take an average of 500 Sq. ft. at Rs. 600 per Sq. ft, this works out
Rs. 3 Lakh each
And out of our (7200) employees at Powai + Madh + City offices in
Bombay, I am sure at least 50% (half) would like to avail of such a facility.
3600 Flats x Rs. 3 Lakh each = Rs 10800 Lakhs.
That is Rs. 108 Crores !
And even if this amount was spread over TEN years, it would mean Rs.
10/11 Crores each year!
From where can company find such money ?
From where can we find even Rs. 5 Crores per year, if we spread-out the
burden over 20 years ?
2. Who (Which group of employees) should get the "loans"? (assuming money was available-which would be of course wrong to assume! )