Is Karnataka trying to introduce 100% reservation for locals in private jobs?

The Karnataka government’s decision to reserve jobs for locals in the private sector has created a stir. Chief Minister Siddaramaiah’s post on X on 100 per cent reservation for Kannadigas in all Group C and Group D jobs in private companies led to backlash, prompting him to delete the post.

A bill mandating reservation for locals has been approved by the Karnataka Cabinet. Now, the government has clarified amid criticism from industry leaders.

What is going on? Let’s understand.

What did the Karnataka CM post?

On Tuesday (July 16), Siddaramaiah posted on X that the Karnataka Cabinet has green-lit legislation mandating private industries to hire only Kannadigas in group ‘C’ and ‘D’ jobs.

“The Cabinet meeting held yesterday (Monday) approved a bill to make it mandatory to hire 100 per cent Kannadigas for “C and D” grade posts in all private industries in the state. It is our government’s wish that the Kannadigas should avoid being deprived of jobs in the land of Kannada and should be given an opportunity to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of Kannadigas,” the chief minister had reportedly written.

He took down the post on Wednesday after it spurred a backlash.

The Karnataka CM posted a fresh tweet on Wednesday (July 17) with revised reservation figures.

Labour minister Santosh Lad also later clarified, stating that the state government is trying to introduce a bill to give preference to locals in private jobs.

“At management (level), it has been decided to provide reservation to 50 per cent of the people. At the non-management level, it has been decided to provide work to 70 per cent,” he told ANI.

The labour minister said that if companies are unable to hire suitable skilled candidates from within the state, they could then fill the post with a non-local applicant.

“If a particular skill is not available, people can be outsourced and they can be given work here. But the government is trying to bring in a law to give preference to locally available skills,” he told the news agency ANI.

As per India Today, the proposed bill does not mention the 100 per cent reservation for Group C and D posts.

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What does Karnataka govt’s bill say?

The Siddaramaiah-led government passed the ‘Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024’ on Monday.

The bill reserves 50 per cent of management positions and 70 per cent of non-management positions for Kannadigas in the private sector.

As per PTI, the bill states, “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.”

A local candidate is defined in the proposed bill as an individual born in Karnataka, residing in the state for 15 years, and can speak, read, and write Kannada legibly, according to an India Today report.

The applicants must possess a secondary school certificate with Kannada as a language. If they do not have it, they have to clear a Kannada proficiency test as specified by the nodal agency notified by the government.

It also states that if qualified local candidates are not available, the industries and establishments should collaborate with the government to train Kannadigas within three years.

If there are not enough local applicants, companies may apply for relaxation.

“Such orders passed by the Government shall be final: Provided that, the relaxation provided under this section shall not be less than twenty five per cent for management category and fifty per cent for non-management categories,” the proposed bill says.

Any employer or manager of an establishment who fails to comply with the provisions of the bill would be liable for a penalty between Rs 10,000 and Rs 25,000.

Row over Karnataka reservation bill

Industry leaders have criticised the Karnataka government’s decision, saying it would “discriminate” against those from outside who want to work in the state.

Kiran Mazumdar Shaw, executive chairperson of biopharmaceuticals company Biocon Limited, wrote on X, “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.”

Mohandas Pai, chairman of Aarin Capital Partners and former finance chief at Infosys, wrote on social media: “The bill should be junked. It is discriminatory, regressive and against the Constitution.”

Swarna Group Managing Director Chi VSV Prasad pointed out the labour shortage, urging the state government to take a call after analysing the industry situation.

“…keeping such restrictions will only ultimately end in stopping all infrastructure projects and the industries also will be closed if such compulsions are imposed… So my view will be that our government should give preference to groups C and D Kannadigas. But, if we don’t get, then what is the alternative you have to suggest?,” he was quoted as saying by India Today.

IT industry body Nasscom has asked the state to withdraw the bill. It flagged concerns that the decision could hamper the growth of the tech industry, impact jobs and force companies to relocate.

The state government has assured it will consult with the industry and address their concerns.

Amid the backlash, Karnataka commerce & industries minister MB Patil said the government will hold “wider consultations”. “We will ensure that the interests of Kannadigas are protected, alongside those of the industries,” he said.

“Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialisation. We will make sure that everyone’s interests are safeguarded," Patil said.

Karnataka Minister for Electronics Priyank Kharge said the labour department, which introduced the bill, is “yet to consult with the industry, the Minister of Industry and the Department of Information Technology.”

He said it will have “wider consultations” with the industry and there was “no need to panic”.

“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,” Kharge stated.

With inputs from agencies