Late Wednesday night, the CMO released a message stating: “The job reservation bill for Kannadigas, cleared by the state cabinet on Tuesday, has been temporarily put on hold.”
The bill stipulated 50% reservation for “locals” in managerial roles and 70% in non-managerial positions across business establishments.
On such an important proposal, the messaging was so poor and handled so casually that the CM’s X handle Tuesday night posted a proposal mooted by the previous BJP govt for 100% reservation for Kannadigas in Group C & D private sector jobs. The post was subsequently withdrawn but the damage was done.
Industry backlash sends K’taka mantris into firefight mode
Caught unaware by the state govt’s move, which seems to have had little to no input from the private sector – on which it was going to be imposed – industry and the business community made their displeasure known loudly and clearly.
Industry body Nasscom voiced apprehensions over the bill’s potential impact on Karnataka’s status as a global technology hub. Nasscom highlighted the sector’s substantial contribution to the state’s GDP and its role as a magnet for digital talent. It said stringent local employment mandates could deter investment and force companies to relocate.
Kiran Mazumdar-Shaw, executive chairperson of Biocon, too echoed these sentiments, emphasising the need for exemptions in the bill to safeguard Karnataka’s technological leadership.
Former Infosys CFO TV Mohandas Pai vehemently criticised the bill, describing it as “fascist” and “discriminatory” and drawing parallels with authoritarian measures.
Ramesh Chandra Lahoti, president of the Federation of Karnataka Chambers of Commerce and Industries, lamented the lack of consultation by govt before planning to introduce such a bill.
In response to the mounting criticism, deputy CM D K Shivakumar, industries minister M B Patil, and IT minister Priyank Kharge moved into damage control mode and tried to allay fears among investors and industry leaders by promising to hold more consultations on the bill before tabling it in the assembly. Shivakumar reassured stakeholders of govt’s commitment to fostering a conducive business environment in Karnataka.
IT minister Priyank Kharge affirmed the govt’s intention to proceed with the bill after thorough consultations with industry experts and relevant stakeholders. He promised that govt aims to secure employment opportunities for locals while attracting investments, underscoring Karnataka’s forward-thinking approach in shaping employment policies.
Patil pledged extensive discussions with CM Siddaramaiah and other key ministers to strike a balance between promoting local employment and maintaining Karnataka’s attractiveness for businesses.
There have been demands for a local quota for Kannadigas in private sector jobs going back to the Sarojini Mahishi report’s proposals in the early 1980s. Several iterations of it have been tabled by govts since, including the previous BJP govt, but did not go anywhere.
The current proposal by the state labour department is titled “Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024”. While it drops the term “Kannadiga”, a local has been defined as one who had been domiciled in the state for 15 years and meets certain criteria of knowing Kannada language.