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The ‘Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill 2024’, mandates 50% employment in the management category and 70% in the non-management categories for Kannadigas in the private sector.
Since it was tabled on July 15, 2024, the bill has sparked so much controversy that the State government was forced to withhold it temporarily.
Here’s everything you need to know about the situation.
Why Is The Karnataka Bill Controversial?
The Bill says, “Any industry, factory or other establishments shall appoint fifty per cent of local candidates in management categories and seventy per cent in non-management categories.” The state cabinet also reserved a 100% quota for Kannadigas in Group C and Group D jobs in the private sector through the bill.
The Bill was drafted by the Labour Department which believed that most of the jobs were given to North Indians, who eventually settled in Karnataka. They formulated the bill with the intention that Karnataka-based companies benefiting from the infrastructure provided by the state must reserve jobs for the locals.
Article 19 of the Indian Constitution allows citizens the freedom to move freely throughout the country, reside, and settle in any part of India and be a part of any profession they like.
Article 15 states that the States “shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth or any of them” while Article 16 guarantees equal opportunity when it comes to employment in the public sector.
Although laws “for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State” are promoted by it.
While framing the Constitution, when some members of the Constituent Assembly appealed for making the place of residence a criterion for public jobs, Dr. B R Ambedkar had said, “It is the feeling of many persons in this House that, since we have established a common citizenship throughout India, irrespective of the local jurisdiction of the provinces and the Indian States, it is only a concomitant thing that residence should not be required for holding a particular post in a particular State because, in so far as you make residence a qualification, you are really subtracting from the value of a common citizenship which we have established by this Constitution or which we propose to establish by this Constitution.”
The Karnataka Bill is not one of its kind. In 2020, the Haryana government passed a law that reserved 75% of private sector jobs, that offered a monthly salary below Rs 30,000, for fthe residents of Haryana.
The High Courts of Punjab and Haryana called the law unconstitutional and struck it down. This case and a similar law passed by the Andhra Pradesh government in 2019 are also pending before the Supreme Court.
Read More: India’s Twisted Economic Growth Story: No Jobs In Sight
Why Are People Against The Bill?
HR (Human Resource) experts say that the Karnataka job reservation bill would be extremely problematic for all businesses, be it large-scale or small, as companies hire based on merit and not domicile.
Bringing into force such legislation necessitates the skilling of locals with the required techniques to meet the growing industry requirements.
People are against this bill as it would take a dig on talent and compliance costs.
Viswanath PS, CEO of recruitment agency, Randstad India, said, “At a time when companies are already facing a significant skill crunch, this move will further tighten the talent pipeline. The government’s role is to enable ease of doing business.
However, this policy might hamper the productivity and efficiency of companies, both big and small, operating in Karnataka.”
He added that if the bill is implemented, it would put at stake its competitive advantage of attracting Multinational Companies (MNCs), Global Capability Centres (GCCs) and startups.
“Although the state’s growth in manufacturing, services, and related industries has resulted in significant migration, the focus should be on enhancing skills and productivity rather than erecting artificial barriers.
As the epicenter of India’s IT revolution, Karnataka risks unsettling national and international tech giants that rely on a skilled workforce,” said AR Ramesh, CEO of TeamLease Degree Apprenticeship.
Balasubramanian A, Business Head at TeamLease Services said, “a similar proposal from the Haryana government in 2021 never saw the light of the day – as it was shot down by the Punjab and Haryana High Court for being unconstitutional as it violates both Article 14 – which guarantees equality of all citizens, and Article 19 – which grants every citizen the right to reside and work in any part of the country.”
The National Association of Software and Service Companies (Nasscom) also demanded the scrapping of the bill, claiming that it would drive out businesses, reverse progress, relocate companies and stifle startups, especially at a time when various MNCs were looking forward to investing in the state.
“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,” said Kiran Mazumdar Shaw, executive chairperson for Biocoin.
The Bill has been put on hold currently, due to the severe backlash it faced. Its fate is yet to be decided.
Image Credits: Google Images
Feature image designed by Saudamini Seth
Sources: The Economic Times, The Indian Express, Moneycontrol
This post is tagged under: Karnataka, Bill, legislation, Dr BR Ambedkar, India, Constitution, Bitcoin, Nasscom, MNCs, GCCs, HR, Haryana, High Court, Punjab, Supreme Court, citizens, Constituent Assembly, North Indians, jobs, private sector, employment, Kannadigas
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