 "Karnataka must junk quota for locals or companies will leave, startups suffer, warns industry body NASSCOM")
The National Association of Software and Service Companies (Nasscom), an Indian industry body, has demanded the Congress-led Karnataka government scrap the bill that reserved 50 per cent of management jobs and 75 per cent of non-management jobs in private companies for locals.
Expressing “serious concerns” about the provision of Karnataka State Government Employment of Local Candidates in Industries Bill, 2024, cleared by the state cabinet chaired by Chief Minister Siddaramaiah on July 15, Nasscom sought for an urgent meeting between industry representatives and the state authorities to “prevent Karnataka’s progress from being derailed.”
Karnataka new employment law will drive away companies
Nasscom said the provisions of the bill would force companies in Karnataka to relocate “as local skilled talent becomes scarce.”
“The bill’s provisions threaten to reverse this progress, drive away companies and stifle startups, especially when more global firms are looking to invest in Karnataka,” Nasscom said.
“It’s deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs and the global brand for the state,” it further said.
As per Nasscom, the tech sector contributed 25 per cent to the GDP of Karnataka. It further stated that the state has a quarter of the country’s digital talent, more than 11,000 startups, and 30 per cent of the total Global Capability Centres (GCCs).
Impact Shorts
More ShortsThe Industry body further mentioned that there was a huge shortage of skilled talent and Karnataka, despite the large pool, was no exception.
“For states to become a key technology hub a dual strategy is key - magnet for best talent worldwide and focussed investment in building a strong talent pool within the state through formal and vocational channels,” Nasscom added.
What is Karnataka’s new jobs quota bill?
On July 15, the Karnataka Cabinet passed a bill formally named the State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024.
The bill does not reserve private jobs for the residents of Karnataka, but it does it for locals who can speak Kannada.
Also, the bill has made it mandatory for locals without a secondary school certificate in Kannada to pass a specified Kannada proficiency test to be eligible for reservation.
As per the Siddaramaiah-led government, to be eligible for the reserved jobs, a local candidate will have to be born in Karnataka, has to be domiciled in the state for 15 years, has to be fluent in Kannada and should have passed a required test by the nodal agency.
Also Read: Karnataka Cabinet clears draft bill reserving 50-75% private sector jobs for locals
Karnataka Labour Minister Santosh Lad has said that the bill will be tabled during the ongoing session of Assembly.
As per the bill, if an adequate number of local candidates cannot be found, establishments can seek relaxation, but the proportion of local candidates must not drop below 25 per cent for managerial positions and 50 per cent for non-managerial roles.
Also, if the qualified local candidates are unavailable, the bill has suggested that employers will then be required to collaborate with government agencies to train and engage locals within three years under the proposed law.
Employers will be slapped fines ranging from Rs 10,000 to Rs 25,000 for violations and repeated violations would attract additional penalties of Rs 100 per day.
Amid the heated debate over the job reservation for locals in Karnataka, Siddaramaiah shared a post on X in which he confirmed that his Cabinet has approved the bill, making it mandatory to recruit ‘100 per cent’ Kannadigas for ‘C and D’ grade posts in all private institutions within the state.
Karnataka CM Siddaramaiah tweets, "The Cabinet meeting held yesterday 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…
— ANI (@ANI) July 17, 2024
The Karnataka CM later deleted the post but damage was already done.
Karnataka’s commerce and industries minister MB Patil jumped in to assure that wider consultations will be held to address and resolve apprehensions and assured that the interests of both Kannadigas and industries will be protected.
#WATCH | Karnataka Labor Minister Santosh S Lad clarifies on CM Siddaramaiah's tweet (that appears to be deleted now).
— ANI (@ANI) July 17, 2024
He says, "At management (level), it has been decided to provide reservation to 50% of the people. At the non-management level, it has been decided to provide… pic.twitter.com/xKrSNQTY0T
“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. The Industries are assured that they need not have any fear or apprehensions and can rest assured,” Patil said.
Why has the Kannada government proposed private jobs’ reservation?
The main reason behind the proposed reservation of private sector jobs in Karnataka is to purportedly compensate for local employment lost due to acquisition of agricultural land to build private business establishments.
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