Karnataka passes bill for local quota in private jobs, faces major industry backlash

PTC News Desk: In Karnataka, the Siddaramaiah government has adopted a measure requiring locals to have reservations in the private sector. The state cabinet adopted the measure, which mandates that Kannadigas be appointed to 50 per cent of management jobs and 75 per cent of non-management positions.

The choice was made during Monday’s state cabinet meeting. “The Cabinet meeting held yesterday (Monday) approved a bill to make the recruitment of 100 per cent Kannadigas mandatory for ‘C and D’ grade posts in all private industries in the state,” Siddaramaiah wrote on X on Tuesday. In response to criticism, the Chief Minister removed the post.

“Our government’s wish is that the Kannadigas should not be deprived of jobs in the land of Kannada and should be given an opportunity to build a comfortable life in the motherland,” he stated in explaining the decision.

Calling his government “pro-Kannada,” Siddaramaiah declared that “looking after the welfare of Kannadigas” is its top concern. It is anticipated that the state Assembly would table the “Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024” on Thursday.

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 clearly.

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 for relaxation if there are still not enough local candidates available. However, the Bill stipulates that the relaxation must be at least 25 per cent for management categories and 50 per cent for non-management categories. The Employment of Local Candidates Act carries fines that can range from Rs 10,000 to Rs 25,000 for violations.

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BACKLASH FROM INDUSTRIALISTS

Industry leaders questioned the Congress government’s decision, with many citing the potential consequences and shortage of competent labour.

The first corporate leader to comment on the decision was Kiran Mazumdar-Shaw, the chair of Biocon. She argued that the policy shouldn’t have an impact on the state’s leadership in technology and asked for an exception for hiring highly qualified candidates.

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. @siddaramaiah @DKShivakumar @PriyankKharge https://t.co/itYWdHcMWw

— Kiran Mazumdar-Shaw (@kiranshaw) July 17, 2024

As a tech hub, we require qualified personnel, and while creating jobs for residents is the goal, this action cannot jeopardise our position as the industry leader in technology. “Cautions that exempt highly skilled recruitment from this policy are necessary,” she wrote on X, tagging Priyank Kharge, Shivakumar, and Siddaramaiah.

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TV Mohandas Pai, a businessman and philanthropist, questioned the decision and demanded that the government invest more funds in skill development rather than imposing locals-only quotas.

“Invest more in higher education if you want to provide Kannadigas more opportunities for employment. Train them. Invest additional funds in the development of skills. Increase the amount of money allocated to apprenticeship programs and internships. As a result, everyone gains expertise. not in this manner. “What do you hope to accomplish with this?” he asked.

Chi. VSV Prasad, Managing Director of Swarna Group, also brought attention to the labor shortage.

If such compulsions are placed on the infrastructure and industries, maintaining such limits would only lead to the termination of all infrastructure projects and the closure of the industries as well. Thus, in my opinion, the government need to prioritise the Kannadigas in groups C and D. He urged the government to make judgments after analysing the state of the business. “But, if we don’t get, then what is the alternative you have to suggest? ” he questioned.