UNION'S SUPPORT

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 June 1984

To:

Dear Mr. Salwi,

Thank you for your letter dated June 7, 1984. I am pleased that you have re-stated, in no uncertain terms, your Union's support for increasing Productivity.

I was extremely disappointed that neither you nor your Gen. Secretary was able to attend the Powai-level Productivity meeting held on June 8, 1984. I understand that both of you were busy with Union matters in certain other Organisations where the workmen are represented by BKS. I would have had no hesitation to change the date and time of the above meeting to suit your convenience had you informed me in advance. I believe that if you had been present in this month's Productivity meeting and addressed a gate-meeting thereafter, exhorting the workmen to live up to the commitment on Productivity made by the Union in the Settlement, it would have given a tremendous boost to our Productivity efforts at Powai.

I am enclosing a copy of the Minutes of the meeting held on June 8, 1984. In this meeting, Deputy General Managers and Production Managers from various Units reviewed the Productivity performance with respect to the levels during the currency of the 1979 Settlement. I am sure that you have already discovered through the figures I sent you along with my letter dated June 4, 1984, that, though there have been improvements in Productivity in some areas, there are several areas where Productivity is actually substantially lower than the 1979 Settlement levels. Even in those areas where there have been significant improvements in Productivity, these are far lower than the agreed target of 25% improvement over the 1979 Settlement levels.

The Unit Committee members have been trying to promote Productivity by reminding workers of the commitment made on their behalf in the Settlement and by individually counselling 'poor performers'. However, a renewed appeal by you and your Gen. Secy. at a  gate-meeting would make a tremendous impact on the workers.

I have stressed repeatedly in the past that several of our-product-lines are being subjected to  severe competitive pressures. We are being forced out of some product-lines and are losing ground in others, because of non-competitive prices. This costly Settlement has made matters worse. It is now essential for the Company that we have a substantial increase in labour productivity to off-set these staggering additional costs.

This is a matter of vital concern to the Company and is an area where the Union can make a tremendous positive contribution.

We are holding the next Powai-level Productivity meeting on July 6, 1984, at 0900 hrs. I once again urge you and your Gen. secy. to attend this meeting and give a call for increased Productivity at a gate-meeting thereafter. The 3-month period within which the 25% increase in Productivity was to be achieved expires on July 11, 1984. If you consider it necessary, we could agree to extend by 1-2 months, the period for reaching the agreed target of Productivity improvement.

With warm regards,

Yours sincerely,

H.C. PAREKH