The new bill, passed by the Government of Karnataka, has wielded various controversies, which has mandated to reserve 50% of management jobs and 75% non-management jobs for the people of Karnataka.
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“Deter Investors from Karnataka”
After the Karnataka cabinet approved the draft State Employment of Local Candidates in Industries, Factories, and Other Establishments Bill, prominent figures such as Kiran Mazumder-Shaw and Mohandas Pai criticized the state government. They argued that such legislation would deter investors from Karnataka and negatively impact the state’s standing.
Biocon Ltd executive chairperson Kiran Mazumdar-Shaw expressed her concerns on X, stating that as a tech hub, Karnataka requires skilled talent. While acknowledging the goal of providing jobs for locals, she emphasized that this move should not compromise the state’s leading position in technology. She suggested that there should be exceptions in the policy for highly skilled recruitment.
Backlashes to the Bill
Former Infosys CFO TV Mohandas Pai also criticized the bill, calling for it to be discarded and labeling it as fascist. He argued that the bill is discriminatory, regressive, and unconstitutional. Pai questioned whether the government, specifically mentioning Jairam Ramesh, should have the authority to determine the identity of individuals. He compared the bill to the totalitarian regime depicted in “Animal Farm” and expressed disbelief that the Indian National Congress could propose such legislation. Pai highlighted concerns about government officers participating in private sector recruitment committees and the requirement for language tests.
About the Bill
The recently approved bill mandates reserving 50 percent of management jobs and 75 percent of non-management jobs for Kannadigas. This legislation encompasses the entire private sector, including the IT sector, and will be presented in the current assembly session. Establishments can apply for exemptions, and the government will grant some relaxations under certain conditions.
Companies that do not comply with the bill’s provisions will face penalties ranging from ₹10,000 to ₹25,000, with an additional fine of ₹100 per day until the local employment quota is met. The bill also requires all private firms to hire only Kannadigas for group ‘C’ and ‘D’ blue-collar jobs.