A workplace literacy demonstration project involving a hospital and a manufacturing company in New York City was conducted between May 1992 and June 1993. Two classes in the spring and fall were conducted. A total of 41 hospital personnel and 30 manufacturing company employees began the training, and 25 hospital employees and 27 manufacturing company employees completed the training. Literacy audits and task analyses were done at each worksite, and job-specific materials were developed based upon the results of these surveys. The materials included tests, practice exercises, workplace fitness forms, and surveys. Two workshop series of 32 hours each were conducted at both worksites. Workshop sessions covered the following topics: use of a dictionary and calculator, problem solving, reading and writing, critical thinking, effective communications and active listening, and understanding charts and graphs. Transactional Analysis, role playing, verbal and written presentations by participants, small group problem-solving activities, and homework were teaching techniques used. An ongoing formative evaluation took place throughout the training, with a summative evaluation conducted at project end. Supervisors at both sites reported improved work habits and increased insight on working smarter by participants, and employee participants were pleased with the training. Communication among employees and between employees and management improved. (Extensive appendixes contain the following: business partners' support letters, an outline of a preworkshop, forms for the project, and a course outline and sample curriculum guide.) (KC)