The Karnataka cabinet recently approved the draft of the State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill. This legislation mandates reserving 50% of management jobs and 75% of non-management jobs for Kannadigas. The move has sparked criticism from key industry leaders, who warn it could deter investors and negatively impact the state’s technological standing.
Industry Leaders Speak Out
Biocon Ltd’s executive chairperson, Kiran Mazumdar-Shaw, voiced her concerns on X (formerly Twitter). She argued that while the bill aims to provide jobs for locals, it risks compromising Karnataka’s leading position in technology. Mazumdar-Shaw suggested that highly skilled recruitment should be exempt from this policy to maintain the state’s competitive edge as a tech hub.
Former Infosys CFO TV Mohandas Pai also condemned the bill, calling it fascist, discriminatory, and regressive. He questioned the constitutionality of the bill and criticized the provision requiring government officers to sit on private sector recruitment committees. Pai’s comments highlighted the bill’s potential to introduce bureaucratic interference in private enterprise hiring processes.
Details of the Bill
The bill mandates substantial job reservations for Kannadigas across all private sectors, including IT. It stipulates penalties ranging from ₹10,000 to ₹25,000 for companies that do not comply, with an additional fine of ₹100 per day until the local employment quota is met. The bill also requires all private firms to hire Kannadigas for group ‘C’ and ‘D’ blue-collar jobs.
Possible Exemptions and Relaxations
While the bill sets strict quotas, it allows for exemptions and relaxations under certain conditions. Establishments can apply for these exemptions, and the government may grant them based on specific criteria.
Conclusion
As the bill moves to the current assembly session for further deliberation, it faces significant opposition from industry leaders concerned about its impact on Karnataka’s investment climate and technological prowess. The debate highlights the tension between local employment initiatives and the need to attract and retain skilled talent in the state’s burgeoning tech sector.
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