The Karnataka cabinet's decision to mandate 100 per cent reservation for Kannadigas in the private sector for Group C and D posts has irked the industry giant in the state which calls the bill "anti-constitutional" and regressive.
The state cabinet approved the bill in this regard during a Cabinet meeting held on Monday, Chief Minister Siddaramaiah said on Tuesday.
The 'Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024', to be tabled on Thursday in the Assembly, mandates that 50 per cent of local candidates be in management categories, while 70 per cent in non-management categories. If the candidates do not possess a secondary school certificate with Kannada as a language, they must pass a Kannada proficiency test as specified by the 'Nodal Agency', it says.
However, several industry leaders in the state have raised apprehensions that the tech industry might suffer as the bill was "discriminatory".
Mohandas Pai, the chairman of Manipal Global Education Services, posted on X that the bill was "fascist" and unconstitutional. "This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh is govt to certify who we are? This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this- a govt officer will sit on recruitment committees of the private sector? People have to take a language test?" Pai said in a post on 'X'.
Kiran Mazumdar-Shaw, the executive chairperson of Biocon Limited, too hit out at the bill and urged the state not to let this Bill affect its leading position in the domain of technology. There should be exemptions for highly-skilled recruitment, she urged.
"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'.
R K Misra, the co-chairman of ASSOCHAM Karnataka and the co-founder of YULU also called the Bill "shortsighted" and added 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 & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted," Misra posted on 'X'.
However, Karnataka minister Priyank Kharge said the authorities will consult the industry stakeholders to resolve any issues. "The bill has been brought in by the labour department. They are yet to consult with the industry, the Minister of Industry and the Department of Information Technology. I am sure that before coming up with the rules of the bill, they will have due consultations with the respective ministries and more importantly, a wider consultation with the industry. So there is no need to panic. We are going to safeguard the jobs for the state as well as encourage investments in the industries with their consultation," he told reporters.
What's in the bill?
*The Bill stipulates all industry, factory or other establishments to appoint 50 per cent of local candidates in management categories and 75 per cent in non-management categories.
*If the candidates do not possess secondary school certificate with Kannada as a language, they must pass a Kannada proficiency test as specified by the 'Nodal Agency'.
*In the absence of qualified local candidates, the establishments should take steps to train them within three years with active collaboration of the government or its agencies.
*If a sufficient number of local candidates are not available, then an establishment may apply for relaxation from the provisions of this Act to the government. "Such orders passed by the Government shall be final: Provided that, the relaxation provided under this section shall not be less than 25 per cent for management category and 50 per cent for non-management categories," 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, within such period as may be prescribed, the 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 powers 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.
*Any employer or occupier or manager of an establishment, who contravenes the provisions of this Act, should be liable for a penalty between Rs 10,000 to Rs 25,000.
If the contravention continues after the penalty has been imposed, then, with further penalty which may extend to one hundred rupees for each day till the time contravention so continues.
