Karnataka job reservation bill: Siddaramaiah Govt faces industry backlash

Karnataka job reservation bill: The Karnataka government's recent approval of a bill reserving jobs for locals in the private sector has drawn sharp criticism from industry leaders. The bill mandates 50 per cent reservation for management positions and 75 per cent for non-management roles for Kannadigas, and it also stipulates 100 per cent reservation for "C&D" grade government jobs.

On Tuesday, the Karnataka cabinet approved the bill, prompting a strong backlash from prominent figures in the tech and business communities, who argue that the legislation is both unconstitutional and harmful to the state's economic health.

Industry Reactions

Mohandas Pai, Chairman of Manipal Global Education Services, vehemently opposed the bill, calling it "discriminatory and regressive." He took to social media, posting, "This bill should be junked. It is discriminatory, regressive and against the constitution. Is the government to certify who we are? This is a fascist bill akin to 'Animal Farm'. Unbelievable that the government can come up with a bill like this - a government officer will sit on recruitment committees of the private sector? People have to take a language test?"

Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, expressed concerns over the bill's impact on the tech industry. "As a tech hub, we need skilled talent, and while 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," Shaw tweeted.

RK Misra, Co-Chairman of ASSOCHAM Karnataka and Co-Founder of YULU, also criticised the bill. "Another genius move from the Karnataka government. Mandate local reservation and appoint a government officer in every company to monitor. This will scare away Indian IT and Global Capability Centres. Short-sighted," Misra posted.

Government's Standpoint

Karnataka Chief Minister Siddaramaiah defended the bill, stating that it aims to prioritise the welfare of Kannadigas. "Our government's aspiration is that no Kannadigas should be deprived of jobs in the land of Kannada so that they can lead peaceful lives. Ours is a pro-Kannada government," he posted on social media.

The bill, drafted by the Labour Department, claims that jobs in industries operating in Karnataka are being taken by individuals from North India. It argues that industries benefiting from state infrastructure, including land and water, should reserve jobs for locals. This stance echoes the earlier Sarojini Mahishi Committee report, which recommended job reservations for Kannadigas in various sectors, although no formal policies were enacted at the time.

Legal Precedents

The Karnataka bill follows a similar attempt by the Haryana government, which proposed a 75 per cent reservation for locals in private sector jobs with salaries below INR 30,000 per month. However, the Punjab and Haryana High Court struck down the Haryana law, declaring it unconstitutional. The court's decision was based on the argument that the law violated constitutional provisions under Articles 14 and 16, as well as the fundamental rights of private employers.

The court's ruling stressed that such laws create unnecessary divisions between states and undermine the concept of a unified Indian identity. It remains to be seen whether Karnataka's new bill will face similar legal challenges.