Hi Friends,
                                              Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.
                                                  There is just no time to look back, no time to wonder,"Will anyone read these pages?"
                                       With regards,
                                       Hemen Parekh
                                       27 June 2013

Thursday, 5 March 1987

HOUSING PROJECTS

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

To:

Dear friends


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.

That makes

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! )

H. C.PAREKH

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