Scrap private job reservation for locals: NASSCOM urges Karnataka government
The National Association of Software and Service Companies (NASSCOM), has voiced its apprehension over a recent bill approved by the Karnataka state cabinet. The bill, known as the Karnataka State Government Employment of Local Candidates in Industries Bill, 2024, was passed on July 15. It mandates a 50% reservation for locals in management jobs, and a whopping 75% in non-management roles within private firms. NASSCOM wants it scrapped.
NASSCOM requests urgent meeting
NASSCOM fears the bill's restrictions could lead to a shortage of local skilled talent, potentially forcing companies to relocate. The tech sector contributes 25% to the state GDP and houses a quarter of India's digital talent. "It's deeply disturbing to see this kind of bill which will not only hamper the growth of the industry but impact jobs and the global brand for the state," NASSCOM stated. The body has requested a meeting with state authorities to discuss these concerns.
Industry leaders criticize job reservation
Industry leaders have criticized the move. Kiran Mazumdar-Shaw, Executive Chairperson of Biocon, stated that while providing jobs for locals is important, it should not affect their leading position in technology. Former Infosys CFO TV Mohandas Pai labeled the bill as "discriminatory" and "regressive," suggesting it should be scrapped. Shriram Subramanian, MD of InGovern Research Services, warned the bill could set a bad precedent, and lead to industry and jobs moving out of Karnataka due to a shortage of local talent.
Legal experts question validity of bill
Legal experts have raised concerns that the draft bill violates Article 14, which guarantees the equality of all citizens, and Article 19, which grants every citizen the right to reside/work in all parts of the country. RK Misra, Co-Founder of Yulu and Co-Chairman of ASSOCHAM, suggested that companies might relocate to other cities if forced to hire only locals. This potential exodus could significantly impact Karnataka's economy and job market.
Pro-Kannada organizations welcome bill
Despite the widespread criticism, the bill has been welcomed by pro-Kannada organizations, who believe it will generate more job opportunities for locals. However, the bill is yet to be tabled in the legislature. The Karnataka government's move follows similar attempts by other states like Haryana, whose decision was struck down by the Punjab and Haryana High Court in November 2023.
