The Working Smart workplace literacy project was sponsored by a public school district and several profit and nonprofit companies and conducted for the hotel and food industry in the Los Angeles area. Literacy instruction was merged with job requirements of the customer service job classifications. Videodisc courseware was developed, as were student workbooks that included 9 performance modules, 13 computational modules, and 27 communications modules. Each module taught problem-solving skills, critical thinking strategies, work attitudes, and safety skills. State-certified teachers delivered the instruction. Participants were a diverse group of employees recruited through the companies' communication channels and through referrals from community adult schools; many had limited English skills. Workers were retained in the program by means of paid release time, cash bonuses, formal recognition, promotional opportunities, and a tailored assessment system. Of 92 students surveyed, 65% were very satisfied and 35% satisfied with the project. Problems encountered included: (1) sustaining corporate commitment; (2) scheduling; (3) lack of test instruments; and (4) underestimation of resource needs. Positive outcomes included an enduring relationship with employers and the development of interactive videodisc technology. An external evaluation found that students received too little interactive video instruction for conclusions about its effectiveness to be made. (The document includes project documents such as news releases, sample participant intake forms, a consultant report, and an external evaluation.) (CML)