Amid controversy, Karnataka puts bill on hold for reservation in private sector firms

PTC News Desk: The Karnataka government has put a measure requiring private companies operating in the state to reserve jobs for Kannadigas on hold and will give it more consideration. 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.

Chief Minister Siddaramaiah 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.” But according to his X post, the measure required 100% reservation at some levels.

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

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.

“My party wants that OBCs be granted reservations in the private sector by the Indian government and the states. He declared, “We are not against candidates running in the General Category.

Meanwhile, following explanation from Labour Minister Santosh Lad, the Karnataka Chief Minister’s post was removed this afternoon. “It has been decided at the management level to offer 50% reservations. It has been determined at the non-management level to give 70% of the workforce work.”

He added that businesses might consider hiring individuals from outside the state if they were unable to find qualified applicants from this limited pool.

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“The work can be outsourced if such talents are not accessible (in Kannadigas). “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 in 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.

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.”

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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 had stated that all Group C and Group D posts will remain reserved for Kannadigas.

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