Karnataka Chief Minister Siddaramaiah (File).
The Karnataka government has cleared a bill to reserve 70 per cent of non-management and 50 per cent of management-level jobs in private sector firms for Kannadigas, Chief Minister Siddaramaiah said on X Wednesday afternoon.
"Cabinet meeting held Monday approved the bill to fix... reservation for Kannadigas in private industries and other organisations of the state."
"It is our government's wish that Kannadigas should be given an opportunity to lead a comfortable life in the motherland... and avoid being deprived of jobs in the land of Kannada. We are a pro-Kannada government. Our priority is to look after the welfare of Kannadigas," the Chief Minister declared.
But Siddaramaiah's post at 2.51 pm followed the deletion of a Tuesday evening post declaring 100 per cent reservation for Kannadigas in all Group C and Group D jobs in private companies in the state.
That post had triggered a furious row, with business leaders and rival political leaders, particularly from the BJP, lining up to take pot-shots at Siddaramaiah and the Congress government.
READ | Karnataka Okays Bill For 100% Quota For Locals In Private Firms
This afternoon Labour Minister Santosh Lad clarified the under-fire state government's decision.
"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 explained.
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 declared there is no dearth of talent in the state.
"Karnataka has enough skilled workforce. There are so many colleges, engineering... medical. We are asking for 70 per cent of work to Kannadigas. If talent is not available they can bring from outside."
Industrialists React
Business leaders have not been very welcoming of this measure. Many have said the IT industry, on the back of which Bengaluru (and Karnataka) has made much of its fortune, would suffer.
Biocon Executive Chairperson Kiran Mazumdar-Shaw was more circumspect; she welcomed the proposal but called for "caveats that exempt highly skilled recruitment from this policy".
"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 a caveat..." she said on X.
Ms Mazumdar-Shaw's company's registered office is in Bengaluru's Electronics City, an 800-acre industrial and technology hub that also has offices of Infosys, Wipro, Tech Mahindra, and others.
Biocon, a global biopharmaceuticals enterprise, employs over 16,500 people.
READ | Karnataka Job Quota May Force "Companies To Relocate"
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.
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 said.
"We Will Resolve..." Minister On Jobs Row
Earlier today, after the industrialists had expressed their concern, Commerce and Industries Minister HB Patil provided reassurance, saying "I have seen that many people have apprehensions... we will resolve this confusion... so that it does not have any adverse effect..." Mr Patil said.
He also pointed out the need for all states, not just Karnataka, to be at their "peak" in a competitive and globalised era of manufacturing and industrial revolution.
"India is experiencing a manufacturing and industrial revolution... 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 declared.
The minister said Karnataka could not lose a "once-in-a-century race of industrialisation".
Union Minister's Support
The Karnataka government's move for quotas in private sector jobs received unexpected support from a member of Prime Minister Narendra Modi's government - Union Minister Ramdas Athawale.
READ | "My Party Demands...": Union Minister's Support Amid Quota Row
"My party (the Republican Party of India (Athawale)) demands the Government of India and state governments give reservations to OBCs in the private sector," he said.
Karnataka's Jobs Reservation Proposal
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.
However, no policies were formulated regarding these recommendations.
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