The Karnataka cabinet has approved a bill mandating 100% reservation for Kannadigas in private sector Group C and D posts, sparking controversy and raising concerns from industry leaders. The bill, called the State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, aims to reserve 50% of management jobs and 75% of non-management jobs for locals in the private sector. The Karnataka government is also considering a 100% reservation for locals in “C&D” grade government jobs. This bill, drafted by the Labour Department, claims that industries operating in the state are losing jobs to states in North India. It argues that industries benefiting from state infrastructure, such as land and water, should prioritize hiring locals.
Karnataka Chief Minister Siddaramiah defended the bill, stating that his government’s priority is to ensure the welfare of Kannadigas. He asserted that his government is “pro-Kannada” and wants to prevent Kannadigas from being deprived of jobs in their homeland. However, he later deleted the controversial tweet regarding the bill.
Industry leaders have strongly criticized the bill, citing concerns about its discriminatory and potentially unconstitutional nature. Mohandas Pai, Chairman of Manipal Global Education Services, labeled the bill “fascist” and argued that it would negatively impact the tech industry. He questioned the government’s authority to dictate private sector recruitment and voiced concerns about the potential for government officers to intervene in company hiring processes. Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, echoed these concerns, urging the state to consider exemptions for highly skilled recruitment to prevent the bill from harming the state’s position as a technology hub. RK Misra, Co-Chairman of ASSOCHAM Karnataka and Co-Founder of YULU, expressed apprehension that the bill’s implementation, including government oversight, could scare away Indian IT and Global Capability Centres.
Karnataka ministers, however, have defended the bill, assuring industry leaders that consultations will be held before finalizing the rules. Priyank Kharge, a state minister, stated that the Labour Department will consult with industry stakeholders, including the Ministry of Industry and the Department of Information Technology, before finalizing the bill’s rules. MB Patil, State Commerce and Industries Minister, also confirmed that wide consultations will be conducted to ensure the protection of both Kannadigas and industry interests. The government aims to address concerns and prevent the bill from having adverse effects on the state’s economy and business climate.
