CHENNAI: Should locals be given 75 per cent reservation in jobs in the State? Does the unemployment rate have anything to do with migrants taking away jobs, or is it just about economic slowdown? Politicians in Tamil Nadu have taken regionalism to a new feverish pitch by promising reservations in jobs for locals, and the post-Covid economic stress among the public has made it sound attractive.
But, is it practical? “Such a move might be good for unskilled workers who need jobs within their vicinity,” says GSK Velu, chairman of FICCI Tamil Nadu. “This cannot be applicable for skilled employees and white collar managers, as it would make Tamil Nadu less competitive.” Velu goes on to say that when governments ink pacts with private concerns, giving them incentives to set up infrastructure in the State-- they could include a clause on local employment.
“However, for other private companies that have not received any such incentives, the clause must be avoided.” A former CEO of a multinational company told Express that the focus must be on skill development and not populism. “That is the right way to generate jobs. “Why would companies come to Chennai rather than go to Bengaluru or Hyderabad. It is due to the talent pool. If such restrictions are brought in, it would significantly hurt the ease of doing business in the State.
The state should come up with more enabling provisions rather than such populist ideas, to safeguard investments,” he added. In fact, other States have taken such measures and burnt their fingers. A NASSCOM survey conducted based on a similar move by the Haryana government showed the policy had a negative impact. Such a reservation could cost Haryana 1.5 lakh jobs in IT-ITES sector, said the report. But, not all agree with that viewpoint.
Chozha Nachiar Rajasekar, president of The Tamil Chamber of Commerce, said that industry should give ‘preference and priority’ to Tamils as being done in other States. However, Rajashekar has reservations when it comes to skilled workforce, but with a difference. “For skilled workforce they should first tap the locals and then go for people from other States if they don’t find suitable candidates,” he said.
An industrial ist , on condition of anonymity, said that reservation for locals in private sector is not feasible. “ I t would kill the competitiveness and impact investments.” The industrialist said that currently industries are struggling to get quality blue-collar workers. “We had been regularly getting complaints that local workforce demand more wages but they don’t perform.
A worker from North India is willing to work for Rs 500 a day and does the job sincerely while there have been issues wi th local workforce who demand Rs 750 a day,” he said. However, a developer said the 75 per cent job reservation for locals is feasible without impacting the migrant workers.
“The industries should give first preference to locals, provided the candidate is eligible. It all depends on how the opposition DMK formulates policies once they come to power.” the developer added.