»Karnataka Pauses Bill For Reservation In Private Sector Firms Amid Industry Backlash
Karnataka Pauses Bill For Reservation In Private Sector Firms Amid Industry Backlash
The Karnataka government has paused a bill mandating job reservations for Kannadigas in the private sector, following widespread criticism and concerns from industry leaders. The bill, cleared by the state cabinet on Monday, required firms in India's IT capital to prioritize local hires for 70% of non-management roles and 50% of management-level jobs.
The Karnataka government has paused a bill mandating job reservations for Kannadigas in the private sector, following widespread criticism and concerns from industry leaders. The bill, cleared by the state cabinet on Monday, required firms in India’s IT capital to prioritize local hires for 70% of non-management roles and 50% of management-level jobs.
Chief Minister Siddaramaiah announced the quota on Tuesday evening, stating that his “pro-Kannada government” aimed to ensure Kannadigas had opportunities to lead a comfortable life in their homeland and avoid being deprived of jobs.
However, Siddaramaiah’s post on X sparked outrage and fury, with business leaders like Kiran Mazumdar-Shaw and the opposition, led by the BJP, targeting the Congress government. Union Minister Ramdas Athawale, the Minister of State for Social Justice and Empowerment, surprisingly expressed support for the bill, emphasizing its potential benefits for backward classes.
The Karnataka Chief Minister’s post was later deleted after clarification from Labour Minister Santosh Lad. Lad clarified that the bill would provide 50% reservation for locals in management positions and 70% in non-management roles. He also stated that if companies were unable to find suitable skilled candidates from the restricted pool, they could consider hiring from outside the state. However, he insisted that there was no dearth of talent in the state.
The quota received a mixed reception, with some businesspersons calling it “discriminatory” while others, like Mazumdar-Shaw, acknowledged the need for local job security but added caveats. The National Association of Software and Service Companies (Nasscom), representing India’s $200 billion technology industry, demanded the bill’s withdrawal, warning that the restrictions could force companies to relocate due to the scarcity of local skilled talent.
Responding to these concerns, Lad told news agency ANI that the government would speak with industry bodies. The bill was drafted by the Labour Department, which claimed that jobs in the state were largely going to people from northern states who then settled in Karnataka.
The proposed policy reflected recommendations made by the Sarojini Mahishi Committee, which suggested that large, medium, and small-scale industrial units with over 50 workers reserve 65% and 80% of Group A and Group B jobs for Kannadigas. All Group C and Group D jobs would be reserved for Kannadigas.
The Karnataka government’s decision to pause the bill reflects the complex and contentious nature of the issue. While the government aims to prioritize local job opportunities, industry leaders fear that the bill could drive away businesses and stifle economic growth. The government’s willingness to listen to industry concerns and further study the bill may help navigate this delicate balance.
Chief Minister Siddaramaiah, Deputy CM DK Shiva Kumar, Karnataka Private Sector Jobs Quota, Job Quota For Locals, Backlash, Kannadigas,