Karnataka CM Siddaramaiah Backtracks on 100% Job Quota for Locals, New Caps Set
News Mania Desk/Agnibeena Ghosh/17th July 2024
Karnataka Chief Minister Siddaramaiah has retracted a social media announcement that promised 100% reservation for Kannadigas in all Group C and Group D jobs in private companies within the state. Labour Minister Santosh Lad later clarified the government’s stance, stating that job reservations in private firms will now be capped at 70% for non-management roles and 50% for management-level employees.
Minister Lad explained the new policy, saying, “At the management level, it has been decided to provide reservation to 50% of the people. At the non-management level, it has been decided to provide work to 70%.” He also added that if companies struggle to find suitable skilled candidates from the local population, they could look beyond state borders for recruitment.
“If such skills are not available in Kannadigas, then the jobs can be outsourced. The government is trying to bring in a law to give preference to locals if skilled labour is available here,” he stated, emphasizing that Karnataka possesses a sufficient skilled workforce. “Karnataka has enough skilled workforce. There are so many engineering colleges, medical colleges, international schools. We are asking them to give 70% of work to Kannadigas. If enough talent is not available, they can bring from outside.”
Siddaramaiah had initially posted about the 100% reservation on X (formerly Twitter), stating, “The Cabinet meeting held yesterday approved a bill to make recruitment of 100% Kannadigas mandatory for ‘C and D’ grade posts in all private industries in the state.” He expressed his government’s desire for Kannadigas to lead a comfortable life and not be deprived of job opportunities in their homeland.
However, this decision faced significant backlash from business leaders, particularly from the IT sector, which has been a major contributor to Karnataka’s economic success. Mohandas Pai, Chairman of Manipal Global Education Services, criticized the bill as “discriminatory, regressive,” and likened it to a “fascist bill,” referencing George Orwell’s “Animal Farm.”
Kiran Mazumdar-Shaw, Executive Chairperson of Biocon, offered a more measured response. She acknowledged the intent to provide jobs for locals but emphasized the need for 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,” she said on X.
RK Misra, co-Chairman of ASSOCHAM Karnataka, also voiced concerns, calling the proposal “short-sighted.” He feared the mandate could deter companies from investing in the state.
In response to these apprehensions, Labour Minister Lad reassured that the government would address the concerns of the industrialists. “We respect their apprehensions and their views. We will talk to them,” he said, indicating a willingness to find a resolution.
Commerce and Industries Minister HB Patil further reassured that the government is aware of the confusion and will work to ensure the policy does not negatively impact Karnataka’s competitive edge. “In this competitive era, states like Karnataka, Maharashtra, Tamil Nadu, and Telangana are striving to be at their best. It is of utmost importance for all states to be at their competitive peak,” he emphasized.
The proposed job reservation policy, drafted by the Labour Department, aimed to ensure that jobs in Karnataka-based companies, which benefit from state-provided infrastructure, are reserved for locals. This proposal echoed recommendations from the Sarojini Mahishi Committee, which suggested that industrial units with over 50 workers reserve a significant percentage of jobs for Kannadigas.
As Karnataka navigates the complexities of job reservation policies, the balance between supporting local employment and maintaining the state’s attractiveness to businesses remains a critical issue. The final outcome will likely shape the economic landscape of the state for years to come.