The Karnataka government has decided to temporarily halt the implementation of a controversial job reservation bill after facing significant opposition from the business sector. Chief Minister Siddaramaiah announced that the bill would be revisited, and further decisions would be made soon. “The bill approved by the cabinet to provide reservation for Kannadigas in private sector organizations, industries, and enterprises has been temporarily put on hold,” he stated on the social media platform X.
The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024 was recently passed by the Cabinet. This bill mandates that 50% of management positions and 70% of non-management positions in private industries be reserved for local candidates.
The draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage.
A comprehensive discussion will be held in the next cabinet meeting to make a final decision.
— Siddaramaiah (@siddaramaiah) July 17, 2024
In addition, candidates without a secondary school certificate with Kannada as a language would need to pass a Kannada proficiency test.
Industry leaders criticized the bill, particularly the requirement for Kannada proficiency, arguing that it would lead to a loss of skilled talent in Bengaluru. RK Mishra, co-chairman of Assocham, expressed concerns, stating, “Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted.”
This move by Karnataka is reminiscent of a similar bill introduced by the Haryana government, which mandated a 75% reservation for state residents in private sector jobs. However, the Punjab and Haryana High Court struck down this bill in November 2023.
The proposed Karnataka bill aims to prioritize job opportunities for Kannadigas in the state. Chief Minister Siddaramaiah defended the bill, emphasizing that the government wants to ensure Kannadigas are not deprived of job opportunities. “We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas,” he said.
Dear @naralokesh garu.
నువ్వు బాగున్నావా. (I hope, I got this right).Karnataka has always excelled in the most sector due to our consistent relationships and consultative approach with industry leaders, advisory bodies, and consortiums in drafting policies and schemes. As with… https://t.co/H3UQOOKAYK
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) July 17, 2024
The bill’s stipulations have led to concerns among industries, with some considering relocating their operations. Andhra Pradesh Minister Nara Lokesh took advantage of the situation, inviting businesses to move to Andhra Pradesh. He promised excellent facilities, uninterrupted power, and skilled talent without government restrictions. “Andhra Pradesh is ready to welcome you,” Lokesh posted, encouraging businesses to expand or relocate to Vizag.
Responding, Karnataka Minister Priyanka Kharge questioned whether Lokesh did not want Andhra Pradesh companies to employ local people. Kharge reassured industry leaders that Karnataka has a history of working closely with businesses to draft policies.
“Our goal is to develop a global workforce using local talent while also encouraging global investments and creating employment opportunities,” she said. Kharge also assured Nasscom that the bill would undergo legal scrutiny and would not harm business interests.
The temporary halt on the bill provides an opportunity for further discussions and consultations with industry leaders to find a balanced solution that addresses both local employment and the needs of the business community.
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