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).
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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! )
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