The World Bank has again cautioned the government against any wage hike In the face of mounting pressure from the country’s Industrial workers demanding a refixa Hon of the national minimum wage at Tk 900. reports UNB.

It (government) should avoid awarding wage Increases that are not linked to improved productivity, and which would therefore further erode the- country’s competitiveness, said a World Bank aide mem oir. prepared to place before the Aid Consortium meeting next month.

Wages and Productivity Commission has recently recommended adoption of a national minimum wage at Tk 900 a month against the present minimum wage of Tk 600

Meanwhile, the workers have planned a 48 hour coun IYywidc blockade beginning March 15 to realise the rec ommendallon of the commission.

The World Bank document, however, observed that the recommendation of wage hike was not based on any analysis of either labour produettviiy of Bangladesh's export comnctt-tivencss.

Quoting a review of a sample of seven public sector units, the bank claimed that wages have been rising at a much faster rate than productivity since 1985.

It warned that the application of the Wages Commission Awards will only widen the gap between wages and productivity. and render those public sector units even less viable

The Bank memorandum pointed out that real wages in the public sector increased by around 30 per cent between 1985 and 1992. triggering 22 per cent Increases In real private sector wages during the period. On the contrary, il claimed, productivity in manufacturing has declined

The World Bank as well as other major donors are deadly opposed to any wage Increase in the Industrial sector wages arguing that this would ad rersely affect the on going re forms in the public manv lecturing sector and further erode the country's external competitiveness

A couple of weeks back, the World Bank Vice-President Joseph Wood in a tetter to the Finance Minister made similar caution against wage hike say Ing any such action would jeopardise the planned reforms tn the jute manufacturing sector.

Official sources Indicated that the World Hank argiMtwnt is likely to influence the Aid Club members at next month's aid pledging session In Parts and they may also ask the government u> n fmfn from any wage hike.