K’taka govt puts Reservation Bill for Kannadigas in private companies on hold amid massive backlash

Bengaluru: The Karnataka government has temporarily halted the contentious Reservation Bill aimed at providing employment quotas for Kannadigas in private firms, following intense criticism from business leaders and technology industry figures.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, which was approved by the state Cabinet on Monday, was scheduled to be presented in the Assembly on Thursday. However, a statement from the Office of the Chief Minister announced on Wednesday that the Bill has been put on hold and will be revisited in the coming days.

“The Bill approved by the Cabinet to provide reservation for Kannadigas in private sector organisations, industries and enterprises has been temporarily put on hold. This will be revisited and decided in the coming days,” the statement read.

Chief Minister Siddaramaiah also addressed the situation on social media platform X, stating: “The Bill intended to implement reservation for Kannadigas in private sector institutions, industries and enterprises is still in the preparation stage. A final decision will be taken after comprehensive discussion in the next cabinet meeting.”

The proposed Bill mandates that industries, factories, and other establishments employ 50 per cent of local candidates in management positions and 70 per cent in non-management roles.

If the candidates do not possess secondary school certificates with Kannada as a language, should pass a Kannada proficiency test as specified by the ‘Nodal Agency,’ the Bill read.

The nodal agency will have powers to call for any records information or documents in the possession of an employer or occupier or manager of an establishment for the purpose of verifying the report.

The government may appoint an officer not below the rank of Assistant Labour Commissioner as the authorised officer for the purposes of compliance of the provisions of the Act.

Siddaramaiah on Wednesday deleted his post on ‘X’ about ‘100 per cent reservation for Kannadigas’. Industry leaders have expressed strong objections to the Bill, labelling it as ‘fascist’ and ‘short-sighted.’ TV Mohandas Pai, a prominent entrepreneur and former Chief Finance Officer of Infosys, described the Bill as “regressive” and called for its dismissal.

“This Bill should be junked. It is discriminatory, regressive, and against the constitution. @Jairam_Ramesh (Congress leader) is govt to certify who we are? This is a fascist Bill as in Animal Farm, unbelievable that @INCIndia can come up with a Bill like this- a govt officer will sit on recruitment committees of private sector? People have to take a language test?” Pai posted on X.

Kiran Mazumdar Shaw, Managing Director of Biocon, echoed similar concerns, emphasising the need for skilled talent to maintain Karnataka’s leading position in technology. “As a tech hub we need skilled talent and whilst 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 stated.

R K Misra, co-chairman of ASSOCHAM Karnataka, criticised the government’s approach on X, warning that it could drive away Indian IT and Global Capability Centers (GCCs). “Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted,” Misra posted.

The National Association of Software and Service Companies (NASSCOM) expressed disappointment and concern over Karnataka’s new Bill mandating reservation for locals in private sector jobs.

In a statement, it said: “Nasscom and its members are disappointed and express deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.”

“Restrictions could force companies to relocate as local skilled talent becomes scarce,” it cautioned.

Karnataka’s Bill bears similarities to legislation introduced by the Haryana government, which mandated 75 per cent reservation in private sector jobs for state residents. However, this law was struck down by the Punjab and Haryana High Court in November 2023.With agency inputs