Facing IT companies’ opposition, Karnataka temporarily suspends job quota bill

18 July 2024

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Bengaluru: The Karnataka government late on Wednesday night suspended the introduction and implementation of a proposed jobs quote bill for locals in the private sector after backlash from the industry. In a social media post, the CM claimed that the bill was still under preparation but gave no explanation on why if this was the case so, it had been passed by the cabinet on Monday. Earlier in the day industry leaders and associations hit out at the government in Karnataka and finally, the state government went into damage control mode.

Industries Minister MB Patil said that the draft bill reserving jobs to locals in the private sector will be discussed with the Chief Minister, IT-BT Minister, Law Minister, and Labour Minister. Several industry leaders as well as IT software and services association

Nasscom argued that the proposed measure will deter talent and investment in the state.

On Monday the state cabinet had approved the ‘Karnataka State Employment of Local Candidates in Industries, Factories and Other Establishments Bill 2024’ which makes it mandatory for the private sector to reserve jobs for Kannadigas only, in their establishments. The bill mandates 50 per cent of management jobs and 70 per cent of non-management roles to be reserved for locals in the private sector. The bill was slated to be tabled in the assembly on Thursday.

A statement from the Chief Minister’s Office said that the proposed bill – which had been approved by the cabinet earlier – will be in abeyance till a ‘detailed discussion is done in the next cabinet meeting before arriving at any further measures.’

Nasscom earlier expressed its ‘disappointment and deep concern’ pointing out that the tech sector which contributes 25 per cent to the GDP of the state and houses a quarter of the country’s digital talent may be forced to relocate. Kiran Mazumdar-Shaw, executive chairperson of Biocon Limited, said “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”

Similarly, former Infosys CFO T V Mohandas Pai called the bill ‘fascist.’ He said that the bill in its current form should be junked as it is discriminatory, regressive and against the Constitution.

After the backlash, the state government has tried some damage control measures. On the official X account of the Chief Minister, a post in which he had earlier endorsed a 100 per cent quota for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector has now been deleted without any explantion.

Industries minister M B Patil said, there will be wider consultations to protect the interests of Kannadigas. “Karnataka is a progressive state, and we cannot afford to lose in this once-in-a-century race of industrialization. The industries need not have fear or apprehensions, and can rest assured,” he said.