The Karnataka Cabinet has approved legislation mandating a 50 percent reservation in management jobs and a 75 percent quota in non-management jobs for locals in the private sector.
However, controversy has risen over a potential provision of the bill, which mandates full reservation for locals in private sector Group C and D posts. The decision was taken at the Cabinet meeting held on Monday and was announced by CM Siddaramaiah in a now-deleted social media post.
"The Cabinet meeting held yesterday (Monday) approved a bill to make recruitment of 100 percent Kannadigas mandatory for 'C and D' grade posts in all private industries in the state... We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas," Siddaramaiah wrote in a now-deleted post on X.
Following backlash from industrialists and experts, the CM further posted a corrected message saying, "The cabinet meeting held on Monday approved the bill to fix 50% reservation for administrative posts and 75% for non-administrative posts for Kannadigas in private industries and other organizations of 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 given an opportunity to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas," he added.
It is our government's wish that Kannadigas should be given an opportunity to lead a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of Kannadigas."
The legislation titled 'Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024', is likely to be tabled in the Assembly on Thursday.
However, the draft of the bill does not include the provision for 100 percent reservation for Group C and D posts, as per an India Today report.
Industry leaders cry foul; ministers respond
Meanwhile, prominent industrialists from Karnataka have expressed their apprehensions about the new bill.
Kiran Mazumdar-Shaw, the Executive Chairperson of Biocon Limited, said that the state should not let this bill affect its leading position in the domain of technology and that there should be exemptions for highly skilled recruitment.
"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 posted on 'X'.
RK Misra, the Co-Chairman of ASSOCHAM Karnataka and the Co-Founder of YULU, called the bill shortsighted and said that if a government officer is appointed in every private company to monitor its implementation, it will scare away Indian IT and Global Capability Centres.
"Another genius move from Govt of Karnataka. Mandate Local reservation and appoint govt officer in every compony to monitor. This will scare Indian IT & GCCs. Short-sighted," Misra posted on 'X'.
And following criticism from industry leaders, Karnataka Labour Minister Santosh S Lad clarified that if adequate skills are not available in the state, people can be outsourced from other states.
On the apprehensions raised by various industrialists on the proposed legislation, Lad said that they will have a detailed consultation with them. However, he pointed out that there is no dearth of talent in the state as there are adequate higher educational institutions in Karnataka.
"Karnataka has enough skilled workforce. There are so many engineering colleges, medical colleges, IT, diploma, and international schools. International investments are coming in here. We are asking them to give 70 percent of work to Kannadigas. If enough talent is not available, they can bring it from outside the state," Lad said.
Explaining the provisions of the new bill, Lad said, "At management (level), it has been decided to provide reservation to 50 percent of the people. At the non-management level, it has been decided to provide work to 70 percent."
Echoing Lad's remarks, state Commerce and Industries Minister MB Patil said that they will have wide consultations, resolve the confusion, and ensure that the interests of Kannadigas are protected along with those of industries.
"I have seen that many people have apprehension regarding this...We will resolve this confusion... We will sit with the CM and resolve this so that it does not have any adverse effect," Patil said, speaking to ANI.
"Keeping the interests of #Kannadigas paramount, I will discuss this issue with the Hon'ble CM Sh @siddaramaiah, IT-BT Minister, Law Minister, and Labour Minister. We will have wider consultations. We will ensure that the interests of Kannadigas are protected, alongside those of the industries," Patil said in a post on 'X'.
What does the bill say?
The bill stipulates that any industry, factory, or other establishment shall appoint fifty percent of local candidates in management categories and seventy percent in non-management categories.
Additionally, the bill mandates that candidates who do not possess a secondary school certificate with Kannada as a language must pass a Kannada proficiency test as specified by the 'Nodal Agency'.
The bill also states that if qualified local candidates are not available, establishments must, within three years and in active collaboration with the government or its agencies, take steps to train them. If a sufficient number of local candidates are still not available, an establishment may apply to the government for a relaxation of the provisions of this Act.
Any employer, occupier, or manager of an establishment who contravenes the provisions of this Act will be liable for a penalty ranging from Rs 10,000 to Rs 25,000.
"If the contravention continues after penalty has been imposed, then, with further penalty which may extend to one hundred rupees for each day till the time contravention so continues," the proposed bill says.
Every industry or factory or other establishment should inform the nodal agency about the compliance of the provisions of this Act in such form and within such period as may be prescribed, a copy of the bill read.
The role of the nodal agency will be to verify the reports furnished by an employer or occupier or manager of an establishment and submit a report to the government indicating the implementation of the provisions of this Act. The nodal agency will have the power 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 purpose of compliance of the provisions of the Act.
(With inputs from PTI and ANI)
