Karnataka Congress Government Pauses Controversial Bill Mandating Job Quotas For Locals In Private Firms— What Has Happened So Far

The Karnataka administration has halted and will further study a bill mandating private companies in the state to reserve jobs to Kannadigas.

Approved on Monday, the legislation requires that firms in India's IT capital should prioritise hiring locals for 70 per cent of non-management positions and 50 per cent of managerial roles.

"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," Chief Minister Siddaramaiah posted on X.

The quota announcement was first made by the Chief Minister on Tuesday evening, who stressed that his "pro-Kannada government" would ensure all "Kannadigas (get) an opportunity to lead a comfortable life in the motherland... and avoid being deprived of jobs in the land of Kannada."

However, his X post said the bill mandated 100 per cent reservation at certain levels.

Siddaramaiah's post triggered significant criticism from business leaders, such as Biocon's Kiran Mazumdar-Shaw, and the opposition BJP.

Interestingly, Union Minister Ramdas Athawale expressed support, stating, "My party demands Government of India and states give reservations to OBCs in the private sector. We are not opposing candidates from the General Category."

The Karnataka Chief Minister's post was deleted after Labour Minister Santosh Lad clarified, "At management level, it has been decided to provide reservation of 50 per cent. At the non-management level, it has been decided to provide work to 70 per cent...", NDTV reported.

He added that if firms couldn't find suitable skilled candidates within this restricted pool, they could hire from outside the state.

"If such skills are not available (in Kannadigas) then the jobs can be outsourced. The government is trying to bring in a law to give preference to locals... if skilled labour is available here..." he said.

However, he asserted that there is no shortage of talent in the state.

The introduction of the quota received a mixed response.

Some business leaders called it "discriminatory," while others, including Mazumdar-Shaw, recognised the necessity of ensuring jobs for locals but added conditions.

Nasscom, the software industry body representing India's $200 billion technology sector, slammed the bill and called for its withdrawal.

"... the restrictions could force companies to relocate as local skilled talent becomes scarce," the industry body noted.

Addressing these concerns, Lad told news agency ANI that he would engage with them.

"We respect their apprehensions and their views. We will talk to them..." he said.

Drafted by the Labour Department, the bill proposed that Karnataka-based companies benefiting from state-provided infrastructure should reserve jobs for locals.

The proposed policy reflects the Sarojini Mahishi Committee's recommendations, which said that large, medium, and small-scale industrial units with over 50 workers should reserve 65 per cent and 80 per cent of Group A and Group B jobs for Kannadigas.

All Group C and Group D jobs would be kept for Kannadigas, the report stated.

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