The Karnataka government's reservation bill in the private sector, known as Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, created a huge outrage in the corporate world which compelled the Congress-led government to take U-turn and put the controversial bill on hold.
Siddaramaiah's dilemma on the bill
Karnataka Chief Minister Siddaramaiah's dilemma was evident after the senior Congress leader made flip-flops as his announcement sparked a nationwide debate over discrimination in employment. First Siddaramaiah posted on X said, "The bill intended to implement reservation for Kannadigas in private sector institutions, industries and enterprises is still in the preparation stage. A final decision will be taken after comprehensive discussion in the next cabinet meeting."
"The Cabinet meeting held yesterday (Monday) approved a bill to make recruitment of 100 per cent Kannadigas mandatory for "C and D" grade posts in all private industries in the state," he added.
He announced '100 per cent reservation for Kannadigas' in private sector. As soon as it drew sharp reactions from industrialists and corporate leaders, the CM on Wednesday deleted his post on 'X'.
In his next post on X, he took a U-turn announcing a pause for the controversial bill.
"The bill approved by the Cabinet to provide reservation for Kannadigas in private sector organisations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days," a statement issued by the Office of the Chief Minister said on Wednesday.
Why is the controversy over the bill?
The reservation bill for Kannadigas in private firms fierce criticism from business leaders and tech tycoons because prima facie it is discriminatory for eligible non-Kannadigas workers. Reacting strongly to the state government's move, industry veterans objected to the proposed quota, calling it 'fascist,' and 'short-sighted. Well-known entrepreneur and former Chief Finance Officer of Infosys, TV Mohandas Pai dubbed the bill as "regressive".
"This bill should be junked. It is discriminatory, regressive and against the constitution. This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a government officer will sit on recruitment committees of private sector? People have to take a language test?" Pai said on 'X'.
We must not affect our leading position in IT: Kiran Mazumdar Shaw
Pharma company Biocon Managing Director Kiran Mazumdar Shaw said, "As a tech hub we need skilled talent and whilst the aim is to provide jobs for locals, we must not affect our leading position in technology by this move. There must be caveats that exempt highly skilled recruitment from this policy."
'Short-sighted', says ASSOCHAM
ASSOCHAM, Karnataka co-chairman RK Misra said on 'X', "Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted."
National Association of Software and Service Companies (NASSCOM) on Wednesday cautioned the government that "the restrictions could force companies to relocate as local skilled talent becomes scarce."
Is reservation for locals successful in India?
This is not the first time a state has brought a bill for the local population. By and large, it is not legally tangible. In the last incident, the Haryana government brought a similar bill, mandating 75 per cent reservation in private sector jobs to the residents of the state, which was later struck down by the Punjab and Haryana High Court on November 17, 2023.
What is the reservation bill for Kannadigas in private firms?
According to the bill, "Any industry, factory or other establishments shall appoint 50 per cent of local candidates in management categories and 70 per cent in non-management categories." If the candidates do not possess secondary school certificates with Kannada as a language, should pass a Kannada proficiency test as specified by the 'Nodal Agency,' it added.
The nodal agency will have powers to call for any records information or documents in the possession of an employer or occupier or manager of an establishment for the purpose of verifying the report. The government may appoint an officer not below the rank of Assistant Labour Commissioner as the authorised officer for the purposes of compliance of the provisions of the Act.
Politics on the reservation bill in Karnataka
The opposition BJP in Karnataka warned the Congress government in the state to be prepared for the wrath of the people if it fails to table the bill that mandates reservations for Kannadigas in the private sector in the ongoing Legislative session.
BJP state president B Y Vijayendra in a post on 'X' asked, "Why did you bring the bill to give employment to the Kannadigas? Why did you hold it back? Why mess with the lives of Kannadigas? Do you need Kannadigas to insult?"
"Let the government present the job reservation bill for Kannadigas, which has given hope to lakhs of unemployed people in rural areas who were deprived of job opportunities despite their qualifications, in the current session, or else be ready to face the anger of Kannadigas," the Shikaripura MLA said.
(With PTI inputs)
