Amid Huge Row, Karnataka Pauses Bill For Reservation In Private Sector Firms

The Karnataka government has paused, and will further study, a bill directing private firms in the state to reserve jobs for Kannadigas. The bill, cleared Monday, requires firms in India's IT capital to prioritise local hires for 70 per cent of non-management roles and 50 per cent of management-level jobs.

"The bill intended to implement reservation for Kannadigas in private sector institutions, industries and enterprises is still in the preparation stage. A final decision will be taken after comprehensive discussion in the next cabinet meeting," Chief Minister Siddaramaiah has posted on X.

The quota announcement was first made by the Chief Minister Tuesday evening.

The Chief Minister said his "pro-Kannada government" would ensure all "Kannadigas (get) an opportunity to lead a comfortable life in the motherland... and avoid being deprived of jobs in the land of Kannada". However, his X post said the bill mandated 100 per cent reservation at certain levels.

Fury and outrage followed Siddaramaiah's post, with business leaders like Biocon's Kiran Mazumdar-Shaw and the opposition, led by the BJP, targeting the Congress government.

There was, though, a measure of support from a surprising quarter - Union Minister Ramdas Athawale. Mr Athawale, the MoS for Social Justice and Empowerment, told NDTV he backed all measures that would benefit the backward classes - whether from the OBC, SC, or ST communities.

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"My party demands Government of India and states give reservations to OBCs in the private sector. We are not opposing candidates from the General Category," he said.

READ | In Row Over Karnataka 100% Quota Bill, Chief Minister Deletes Post

Meanwhile, the Karnataka Chief Minister's post was deleted this afternoon after clarification from Labour Minister Santosh Lad. "At management level, it has been decided to provide reservation of 50 per cent. At the non-management level, it has been decided to provide work to 70 per cent..."

He also said that if companies were unable to hire suitable skilled candidates from this restricted pool, they could then look at hiring people from outside the state.

"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 said.

However, he insisted there is no dearth of talent in the state.

The quota saw a mixed reception when introduced.

Some businesspersons called it "discriminatory" while others, like Ms Mazumdar-Shaw, acknowledged the need to ensure jobs for locals but added caveats.

Software industry body Nasscom, which represents India's $200 billion technology industry, sought its withdrawal saying the bill "threaten to drive away companies". "... the restrictions could force companies to relocate as local skilled talent becomes scarce," the top industry body said Wednesday.

READ | Karnataka Job Quota May Force "Companies To Relocate": Nasscom

Responding to these concerns, Mr Lad told news agency ANI he would speak to them. "We respect their apprehensions and their views. We will talk to them..." he had said.

Drafted by the Labour Department, the proposed bill claimed the jobs in question were being given largely to people from the northern states who were then settling in Karnataka. It proposed that Karnataka-based companies benefitting from state-provided infrastructure reserve jobs for locals.

The proposed policy, it is understood, reflected recommendations made by the Sarojini Mahishi Committee, which said large, medium and small-scale industrial units with over 50 workers had to reserve 65 and 80 per cent of Group A and Group B jobs for Kannadigas.

All Group C and Group D jobs would be kept for Kannadigas, the report had said.

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