In a strong rebuke to the proposed bill, NASSCOM had called on the Karnataka government to withdraw the contentious bill.
Published Jul 17, 2024 | 10:31 PM ⚊ Updated Jul 18, 2024 | 8:59 AM
The Vidhana Soudha the seat of the Karnataka Legislative Council. (Wikimedia Commons)
Amid backlash over the Karnataka government’s proposed bill to reserve jobs in private firms for Kannadigas, CM Siddaramiah on Wednesday, 17 July put the contentious bill on hold. The decision comes a day after the bill was passed.
The proposed legislation – Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024 – championed by the state government on 16 July had ignited a fierce battle between industry heavyweights and pro-Kannada groups. Taking to X to share the government’s decision, Siddaramiah wrote that a final decision would be taken after a comprehensive discussion in the next cabinet meeting.
The draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage.
A comprehensive discussion will be held in the next cabinet meeting to make a final decision.
— Siddaramaiah (@siddaramaiah) July 17, 2024
Commenting on the CM’s decision, Minister MB Patil said that the CM had taken due cognizance and assured industry leaders not to panic. He said, “The Bill is withheld until further consultations and due diligence. Industry leaders needn’t panic as assured. The government is committed to further creation of jobs, and furthermore for Kannadigas, however in a more amicable manner.
The Siddaramaiah cabinet had approved the draft bill aimed at promoting employment opportunities for local candidates in industries, factories, and other establishments on 16 July.
Several renowned business people including Biocon executive chairman Kiran Mazumdar Shaw had expressed discontent over the Bill.
There was also intense opposition from IT and BT companies, industrialists, and industry bodies like NASSCOM, who warned of devastating consequences for the state’s economy and its reputation as a hub for technology and innovation. Meanwhile, Kannada outfits and activists rallied behind the bill, hailing it as a landmark move to prioritise employment opportunities for Kannadigas.
Amid heavy backlash from private industry owners following its nod to introduce a bill aiming to reserve 50 percent jobs in management and 70 percent in non-management, and 100 percent jobs in C and D grade posts for Kannadigas, ministers MB Patil and Priyank Kharge had, earlier in the day, assured consultation with stakeholders before it is passed.
Responding to the criticism, Minister for Commerce and Industries, Infrastructure MB Patil assured to address the issues amicably and hold talks with Chief Minister Siddaramaiah.
It is important to note that the CM had earlier deleted a post on his X account, which announced giving the nod to the bill mandating 100 percent reservation for the C and D grade posts in private firms.
Minister for Electronics, IT/BT and Rural Development and Panchayat Raj, Priyank Kharge took to X to say that the state government will engage with all stakeholders to ensure “a favourable environment” that boosts investments and creates more employment opportunities.
In a strong rebuke to the proposed bill, the National Association of Software and Service Companies (NASSCOM) had called on the Karnataka government to withdraw the contentious bill.
The apex body for India’s technology industry argued that the bill poses a significant threat to the state’s hard-won reputation as a hub for technology and innovation. In its press statement shared on X, NASSCOM pointed out: “Concerns are rooted in the bill’s potential to disrupt the industry’s talent pool, forcing companies to relocate and stifling the growth of startups.”
“The industry body points out that the tech sector is a significant contributor to Karnataka’s economy, accounting for 25% of the state’s GDP and providing a home for a quarter of India’s digital talent, over 11,000 startups, and 30% of the country’s Global Captive Centers (GCCs). With the tech industry already facing a global shortage of skilled talent, NASSCOM fears that the bill’s restrictions will only exacerbate the problem, driving away companies and undermining the state’s economic and social development,” it said.
Seeking time with the government to hold deliberations about the bill, it further said, “The industry body is seeking an urgent meeting with state authorities to address their concerns and prevent the bill from derailing Karnataka’s progress as a leading tech destination.
Responding to the statement, TDP leader and Andhra Pradesh minister Nara Lokesh said that the state understands their disappointment and assured to welcome NASSCOM. He wrote, “We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data center cluster at Vizag. We will offer you best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise with no restrictions from the Government.”
Taking an serious exception over the Karnataka government’s nod on mandating jobs for locals in the private firms, the IT and BT companies chiefs claimed that this would hinder the quality and stressed on the state to reconsider its decision.
Noted business tycoons Biocon Executive Chairman Kiran Mazumdar Shaw and former Infosys CFO TV Mohandas Pai criticised the government’s decision on the matter and said there must be caveats that “exempt highly skilled recruitment from this policy.”
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. @siddaramaiah @DKShivakumar @PriyankKharge https://t.co/itYWdHcMWw
— Kiran Mazumdar-Shaw (@kiranshaw) July 17, 2024
Meanwhile, TV Mohandas Pai posted on X: “This bill should be junked. It is discriminatory, regressive and against the constitution. @Jairam_Ramesh (Raja Sabha member) is govt to certify who we are?”
Tech brand consultant Raghavendra Rao told South First: “Our clients are private players and are here to do business ethically, bring profits and at the same time follow the law of the land as laid down. Now they hunt for talent based on the individual qualifications and experience. Language domicile is not a hinderance as long as he or she is a citizen of India.”
“The new law by the Karnataka government is being forced on industries, which is not in the best interest of the state’s growth,” opined Rao.
Federation of Karnataka Chambers of Commerce and Industry (FKCCI) former chairman Sampath Raman told South First: “This decision has come out of anxiety of growing unemployment in the state. Every government feels it to be its responsibility to ensure that all employable locals are employed. It is a laudable social objective. There is no other opinion on this. As Kannadigas, we are proud to be employed in those companies that are running with the necessary help and co-operation of the government.”
Stating that it is a violation of fundamental rights, Sampath Raman pointed out: “The fundamental rights clearly say that any citizen of India can seek a job anywhere in the country. There are no restrictions in the constitution.The way this bill has been drafted, it is clearly a violation of fundamental rights. If every state rolls out such laws, then what will be the condition in the country?”
The industrialist said, “Local and small industries employing local technologies and locally available traditional skills have a scope to grow with the local talent. As technology develops rapidly, we need different and more skilled expertise.”
He further added, “With Karnataka not possessing skilled labourers, it will not be a preferred destination for new and high technology industries. We will get into such a situation that economic growth will stall because of self-restrictive economic development policies. Kannadigas employed in other states will be brought to such a level that – if similar laws are passed in other states – then these people will be driven out.”
Stating that this bill is impractical, he asked: “Will it be tolerable? Will it be acceptable? What kind of commotion will happen? If implemented, it is going to be catastrophic, impractical and retrograde. Haryana and Telangana states have also brought similar laws but they are not doing well.”
Citing instances of similar laws that were passed in other states, he explained, “The high court of Haryana has struck down the law rolled out by the state government. It will also be followed in Telangana. These laws are retrograde. The unemployment rate is varying anywhere between 5 to 10 percent and it might be even more. On the other hand, every industry is crying over the lack of willingness of unemployed youth to work in industries.”
Stating that the proposed law unscientific and appears to be not well thought out, he added, “I also run an industry which requires engineers and marketing executives. I am facing inadequacy in terms of manpower. Nobody is willing to come for the manufacturing industry. Most of them are looking at desk jobs. The government states in the draft bill that the industries must train locals for a period of three years. I ask the government: will they bring willing youth for training? We will provide training.”
He continued: “The government stated that an individual has to be domicile for 15 years and must know to read and write Kannada and communicate in the same language as well. This is too much to ask for. For instance, in group C and D grade jobs, education or language skills are not important, instead technological skills are the top priority. Where will we ask the employees to write in Kannada? This bill is impractical.”
Before the government’s announcement to put the bill on hold, Kannada activists lauded the decision and urged the Congress government to remain steadfast in its commitment.
Welcoming the government’s proposed bill, Kannada Rakshana Vedike President TA Narayanagowdru met CM Siddaramaiah and congratulated him for giving nod to this bill, mandating reservation in management and non-management quotas in the private firms.
Extending wishes to the government, Narayanagowdru said: “This bill has to be enacted, with the elected representative extending unanimous support to pass the bill in the house. I am confident that this bill will be enacted. The long pending demand and dream of all Kannadigas will come true. This will prevent Kannadigas from remaining unemployed in their state.”
Appealing to the government to not stop the companies that threaten to move away from Karnataka, he said, “I have also observed the statements of corporate companies and industrialists. I urge not to heed on such statements as they are anti-Kannada. This government has been elected by Kannadigas not by the corporates. This bill has to be enacted in the ongoing session.”
Belagavi District Kannada Organisations Action Committee Chairman Ashok Chandragi told South First: “We wholeheartedly welcome this move by the government. This demand was pending for the past several decades. This was much needed because the Kannadigas’ situation in Bengaluru and Belagavi is grim. When late Ramakrishna Hegde was at the helm in Karnataka in 1986, he had set-up a committee under the headship of Karnataka’s first woman parliamentarian Sarojini Mahishi on the same matter. The committee recommended reservation for jobs in the private firms long back.”
He further added, “It was not fully implemented. One must understand that as per the government, the definition of Kannadiga is that if any person from other state is residing more than 15 years in Karnataka than he is considered as Kannadiga. Hence, those who wish to work in Karnataka must learn Kannada.”
(Edited by Neena)
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