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).

27 Oct 1986

To:

Dear Friends                        

Keeping Score

The season of cricket-tests have just begun and in the months to come,  test-scores 'will be  discussed  in Powai,  from the start of a match till the end.

There  will be  excitement  everywhere  -  all  throughout the day.  All of  us will identify ourselves with  the Indian team and monitor their  progress.  We will feel  happy, if they are doing well and feel unhappy if they are losing  the game.

All this is very natural - very human.

Then, how come  we forget it when  it comes to playing another game  called  "Economy Drive"?   In  fact,  in  this  game, we ourselves are the players .'

If our  team has a  target, a goal  —  then  someone must keep score.  But  what good  is a  'score' which  is kept  secret  ? Then no one is excited  - no one is motivated  - and no one  is cheering nobody  I  And players  don't like  to play if nobody is cheering them.

So today, I wish to cheer the PGM  Group.

Under  Economy  Drive,  it had  set  some  target  for SAVINGS during the  4 months of June-September 1986.   And here is  the SCORE - CARD  :

		SAVING (RS. - lakhs)
		TARGET	ACTUAL
1.	Material Cost	3.60	2.13
2.	Overtime	1.40	2.71
3.	Power conservation	1.45	1.13
4.	Travelling/Conveyance	0.47	1.90
5.	Economising on Purchases	-	0.14
6.	Other Expenses	0.26	0.51
	TOTAL	7.18	8.52

We also deferred purchase of electrical fittings worth

Rs. 0.87 lakhs.                       

There was also a saving of  Rs. 0.96 lakhs due to reduction in usage of hired-cars (contributed by all groups).

My CONGRATULATIONS to all those who worked for  these savings !

In the meantime,  we in PGM, have set  for ourselves, a target of saving  Rs.  56 lakhs  during the  current year.   And with your co-operation we should be able to exceed that.

I seek your co-operation  in :

- reducing all wastages in the consumption of :

-      water

-      electricity

-      stationery

-      canteen food, etc.

handling  canteen  crockeries  with more  care  to  reduce breakages

improving efficiency  at all levels  by working  harder to reduce cost.

I am quite sure that  other groups too have done well in their drive for economy.   As far as PGM group  is concerned, I will let you  know the score sometime  in Jan  1987 - for the first quarter of 1986-1987.

Mount Kailash  - of  our Profitability  - is somewhere  in  the Himalayas.   Out  of  the  68  drivers  who have  entered   the Himalayan Car  Rally  this week, only  20/25 will  complete  it successfully after a tough ride of 2840 KM.

Will we reach the destination in our  "drive" ?

H.C. PAREKH

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).

22 Oct 1986

To:

Dear Friends              

CONSERVATION OF ELECTRIC POWER

I have  received a  large number  of suggestions on  the above subject.

Keeping  in view  the long  list of  suggestions on  the above issue, I felt it was better to issue this explanatory note.

Out  of  the  above  suggestions,  a  majority  are  regarding general lighting in offices/shops viz-a-viz :

(a)  Switching off lights during lunch timings

(b)  Removing a  certain  number  of tubelights  from  the fittings.

(c)Segregation of light circuits.

Before taking up this issue,  I give below a table which shows the  electric consumption  of  various electrical  appliances, including light fittings :

	Description	Wattage	Consumption per hour	Cost of Energy (Rs. )
1.	.2 ft. tubelight	29 W	0.029 Kwh	0.0348
2.	4 ft. tubelight	52 W	0.052 Kwh	0.0624
3.	Window A.C. Unit	1250 W	1.250 Kwh	1.5000
4.	1 HP Motor	746 W	0.746 Kwh	0.8950
5.	250 W HPMV Lamp	295 W	0.295 Kwh	0.3540
6.	400 W HPMV Lamp	453 W	0.453 Kwh	0.5440
7.	1000 W HPMV Lamp	1098 W	1.098 Kwh	1.3180
8.	250 W HPMV Lamp	324 W	0.324 Kwh	0.3890

From the above  table, it is quite  clear that I No.  of 4 ft. tubelight  consumes  0.052  Kwh  power  in  one  hour  whereas consumption  of other  high  wattage  lamps/workshop machines/ window A.C.  units etc. is very  high in  equivalent period of time considering cost of Kwh unit as Rs.  1.20.

As  regards suggestions  to  switch  off  lights  during lunch timings, tea  breaks, etc., we  would like  to say  that it is the moral duty of all of us to ensure that  lights/fans/window A.C. units etc.  are switched off whenever not required - provided this does not disturb others.  This can be achieved only with the co-operation of one and all.

As regards  other suggestions mentioned  above, we  would like to mention that the lighting  in the offices/shops is designed for general  illumination level when  the electrification work was originally  carried out.   Subsequently, the  layouts, the user, the  requirement might  have changed and, hence,  it may happen that  lighting in some of the  areas may be higher than the minimum  required level.  It may  vary from place to place and from  person  to person  depending upon  the type  of work that is being done by different occupants.

In some  of the office  areas, the  natural light  that may be available  may be  adequate  for  the user  and  the concerned users may  jointly request PEL  Department  to remove unwanted tubelights or starters so as to save electrical consumption.

Since  electrical  saving  in  the  office  lighting areas   is marginal,  any alterations  in  the switches,  cables  and relocation  of fittings  etc. will  be  much more  costlier and, hence, the  same is  not desirable. Nevertheless,it will be worthwhile   to  remove  starters  and/or   tubes  from  such fittings, for which PEL Department  may be contacted.

Suggestions are always  welcome - for, their  basic purpose is to check  on wastage  - big  or small  - and  achieve savings. However, it will  be more beneficial for both  - the suggester and the organisation  - if  ways and  means are  suggested to check on major wastage areas.

May  I, therefore,  request all  the  readers to  come forward with   their  valuable   suggestions   which   can   help  the organisation in saving costly energy wastage!

Regards,

H.C. PAREKH

TECHNOLOGICAL CHANGES & EMPLOYMENT

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).

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.

  H.C. PAREKH

A MESSAGE WELL RECEIVED

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).

26 sep 1986

To:

Shri

The President

Bharatiya Kamgar Sena (BKS)

Sena Bhavan

Shivaji Park

Bombay 400 028

A MESSAGE WELL RECEIVED

Dear Shri

On behalf of the Management of L&T and on my own behalf, I wish to compliment you, for your spirited speech delivered yesterday evening to a group of shop-representatives.

I was specially moved by your earnest message to the workmen to improve their all-round PRODUCTIVITY, for building up our nation. I am sure, your appeal would inspire them to strive hard to realise the productivity improvement targets embodied in the latest 4-year agreement.

I wish to convey my sincere thanks for sparing your valuable time in visiting L&T. We look forward to many more visits.

Thanking you and with best regards,

Yours sincerely,

H.C. PAREKH