Karnataka Pauses Bill for Reservation in Private Sector Firms Amid Huge Row

Karnataka Pauses Bill for Reservation in Private Sector Firms Amid Huge Row

Bangalore: A measure requiring private companies operating in the state to set aside jobs for Kannadigas has been put on hold while the Karnataka government studies it more. The measure, which was approved on Monday, mandates that companies in the IT hub of India give preference to hiring local candidates for 50% of management-level positions and 70% of non-management roles. “Work is still being done on the measure that will allocate seats for Kannadigas in private sector businesses, industries, and institutions. The next cabinet meeting would have a thorough discussion before a final decision is made, according to a tweet made by Chief Minister Siddaramaiah on X. The Chief Minister initially announced the quota on Tuesday night.

According to the Chief Minister, all “Kannadigas (get) an opportunity to lead a comfortable life in the motherland… and avoid being deprived of jobs in the land of Kannada” would be guaranteed by his “pro-Kannada government.” However, according to his X post, the measure required 100% reservation at some levels. After Siddaramaiah’s post, the opposition, backed by the BJP, and corporate heavyweights like Kiran Mazumdar-Shaw of Biocon, targeted the Congress administration in a fit of wrath and indignation. Nonetheless, there was some unexpected backing from Union Minister Ramdas Athawale. The Minister of Social Justice and Empowerment, Mr. Athawale, told NDTV that he supported any policies that would help the underprivileged, regardless of whether they belonged to the OBC, SC, or ST communities.

Chief Minister Deletes Post in Disagreement Over Karnataka 100% Quota Bill

In the meantime, the clarification from Labour Minister Santosh Lad led to the deletion of the Karnataka Chief Minister’s post this afternoon. “A 50% reservation has been decided upon at the management level. It has been determined to give 70% of workers jobs at the non-management level.” According to him, corporations may consider hiring individuals from outside the state if they are unable to find qualified candidates from this limited pool. The BJP protests the alleged Mysuru land scam under the banner “When the Chief Minister Is Involved…” If Kannadigas lack these skills, occupations can be outsourced. “If skilled labor is available here, the government is trying to pass a law giving preference to locals,” he stated.

Still, he maintained that the state is not short on talent. When the quota was first introduced, opinions were divided. While some businesspeople labeled it as “discriminatory,” others—like Ms. Mazumdar-Shaw—acknowledged the necessity of providing jobs for locals while adding certain qualifiers. Being a tech hub, we require qualified personnel, but even though creating opportunities for residents is the goal, this action cannot compromise our position as the industry leader in technology. Recruitment of highly skilled workers must be exempt from this policy under certain conditions. The $200 billion software business in India is represented by the software industry association Nasscom, which requested its removal, claiming the measure “threatens to drive away companies.” The leading trade association stated on Wednesday that “the restrictions could force companies to relocate as local skilled talent becomes scarce.”

Job Quota in Karnataka May Need “Companies to Relocate”: Nasscom

In response to these worries, Mr. Lad promised to talk to the news outlet ANI. “We acknowledge and honor their concerns and opinions. We’re going to speak with them,” he’d stated. The proposed bill, which was drafted by the Labour Department, stated that the majority of the persons receiving the employment in question were relocating to Karnataka from northern states. It suggested that businesses in Karnataka that profit from public infrastructure set aside positions for residents. It is thought that the proposed policy followed the recommendations of the Sarojini Mahishi Committee, which mandated that 65 and 80 percent of Group A and Group B positions be reserved for Kannadigas in large, medium, and small-scale industrial facilities with more than 50 workers. The study stated that all Group C and Group D posts would remain reserved for Kannadigas.

What is said in the bill?

According to the bill, a local candidate must be a Karnataka native, have lived in the state for at least 15 years, and be able to write, read, and speak Kannada. The candidates need to have completed secondary school and learned Kannada. If not, the bill specifies that individuals must pass a Kannada proficiency test as determined by the government-notified nodal body. The companies and establishments shall work with the government to train local applicants within three years if there are no eligible candidates from the area.

Companies may seek relaxation if there are still not enough local candidates available. However, the bill stipulates that the relaxation must be at least 25% for management categories and 50% for non-management categories.