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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30 Sep 1986
Dear SV
General
Secretary-BKS Union
Sub:
Technological Changes & Employment - Labour Management Co-operation
Last week
the two of us attended a National Workshop on "Labour Management
Co-operation on Productivity & Technology Changes", at Delhi.
During the
course of the 2-day debate, repeatedly the question came up of the staff
rendered surplus due to changes in technology/ increase in productivity. It was
heartening to hear the leaders of the major central Trade Unions say that they
would give full support for modernisation, technological changes and increase
in productivity as long as the employers guarantee that there will be no
retrenchment of staff as a result of these changes.
Such a
positive attitude is a refreshing departure from the dogmatic stand taken by
some of the unions in the past. It was obvious that there is an all-round
appreciation that neither can we generate additional employment, nor can we
improve the standard of living of our citizens unless we adopt - and adapt
ourselves - the latest technology and do so rapidly.
The crux of
the problem is for the unions, the employees concerned and the management to
work together sufficiently in advance so that the employees likely to be
affected can be retrained for different jobs. We know that birth is painful.
This is equally true of rebirth and all that an organisation can do is to
lessen the pain of rebirth. The pain cannot be eliminated altogether. But, to
what extent can the pain be reduced would largely depend upon the employee
concerned himself. No matter what his age, he must be willing to learn new
trades - new skills. He has to make himself useful to the organisation and earn
his wages. No organisation can carry on its pay-roll an useless employee
permanently.
It is the
responsibility of the management to visualise the technological changes on the
horizon 2 years or 5 years ahead of time. It is also the responsibility of the
management not only to share such "visions" with the employees but to
initiate a dialogue with the union sufficiently ahead of time.
It is the
responsibility of the employees and the union to co-operate with the management
in a smooth change-over to the new technology with the least resistance and
maximum accommodation.
I foresee at
least two changes on the horizon within Powai during the next 2 to 5 years, as
detailed below :
(a) Introduction of Electronic PABX. Our existing PABX
system is nearly 25 years old and totally unreliable. I am sure we lose lakhs
of rupees worth business every year due to our poor communication system. It is
therefore imperative that we change over to the latest technology, viz., the
Electronic PABX. This can happen within the next 2 years. This may however,
render most of the telephone operators surplus. Ultimately may be just one or
two operators may be required.
(b) Computer Aided Design (CAD). All over the developed
world, computers are taking over from the Draughtsman. In Powai itself a small
beginning has been made by the introudcion of CAD in Group II and III. I
foresee a situation where by 1991/92, most of our draughting gets done on
computer-driven plotters. This may render surplus most of our Draughtsmen at
present numbering 141.
By a copy of
this letter I am. asking the concerned Managers to initiate a dialogue with the
Union and the concerned employees right away. In my opinion there deployment/
retraining decisions sould emerge jointly in participation with the employees
concerned. I am also requesting the Managers all over Powai to let me know what
other technological changes they foresee during the next 5 years which may
result into surplus people who may require retraining. Let us hope that
modernisation in L&T becomes a rewarding experience and not a painful
rebirth.
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