The Karnataka cabinet recently approved a Bill proposing significant job reservations in the state. The Bill mandates that 50% of management roles and 75% of non-management positions in the private sector be reserved for locals.
Additionally, it seeks to enforce 100% reservation for locals in "C&D" grade government jobs.
Now, the move has sparked significant backlash from several industry leaders, who argue that it is discriminatory and could harm Karnataka's tech industry.
Mohandas Pai, Chairman of Manipal Global Education Services, criticized the Bill as "fascist" and unconstitutional, expressing concern over government interference in private sector hiring processes.
"This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People have to take a language test?" Pai said on 'X'.
Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, stressed the importance of exempting highly skilled positions from such mandates to safeguard Karnataka's tech sector leadership.
"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," Shaw said 'X'.
Similarly, RK Misra, Co-Chairman of ASSOCHAM Karnataka, criticized the Bill as shortsighted, warning that appointing government officers in private companies to oversee implementation could deter Indian IT and Global Capability Centers (GCCs) from operating in the state.
"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," Misra posted on 'X'.
These criticisms emerged shortly after Karnataka Chief Minister Siddaramaiah announced the Bill's approval, asserting that it prioritizes job opportunities for Kannadigas, aiming to prevent job loss to workers from other states. The Bill, drafted by the Labour Department, claims that infrastructure-supported industries should prioritize local hiring to benefit from state-provided resources like land and water.
"The Cabinet meeting held yesterday approved a bill to make it mandatory to hire 100 per cent Kannadigas for "C and D" grade posts in all private industries in the state. It is our government's wish that the Kannadigas should avoid being deprived of jobs in the land of Kannada and should be allowed to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of Kannadigas," he posted on X.
Earlier recommendations from the Sarojini Mahishi Committee suggested significant job reservations for Kannadigas in various categories of industrial units based on their size. Specifically, it proposed that 65% and 80% of jobs in A and B categories, respectively, should be reserved for locals, while 100% reservation was recommended for C and D categories. Despite these recommendations, concrete policies ensuring these reservations were not implemented.
Additionally, the 2022 Kannada Language Comprehensive Development Act proposed reservations for industries benefiting from state government incentives like tax exemptions. However, specific policy rules for such reservations have yet to be formulated.
In a recent cabinet meeting on Monday, the Karnataka government approved a bill mandating 100% job reservation for Kannadigas in C and D grade positions across all private industries. Officials from the Labor Department confirmed that the bill is slated for presentation and passage during the current legislative session.
