Explained: How Karnataka's Job Reservation Bill for Kannadigas will affect companies

The initial announcement aimed at reserving 100% of jobs in C and D categories for Kannadigas was quickly retracted after facing harsh criticism, and a revised announcement made no mention of these reservations.

Team Asianet Newsable

First Published Jul 18, 2024, 12:49 PM IST | Last Updated Jul 18, 2024, 12:49 PM IST

The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, has ignited a storm of criticism from industry bodies and stakeholders. The proposed bill seeks to reserve 50% of management jobs and 75% of non-management jobs for locals in the private sector. However, within hours of its announcement, the bill was put on hold due to significant backlash.

Initial announcement and immediate backlash:

Taking to X, Chief Minister Siddaramaiah said, "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."

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Concerns from the IT industry:

The IT industry, valued at over $245 billion and home to major companies like Google and Infosys, expressed concerns over the bill. The influx of professionals from other parts of India has left fewer opportunities for locals, according to CM Siddaramaiah. He stressed the government's pro-Kannada stance and said, "We are a pro-Kannada government, our priority is to look after the Kannadigas."

Provisions of the controversial bill:

The bill mandates that industries, factories, and other establishments hire 50% local candidates for management positions and 75% for non-management roles. The Siddaramaiah-led Cabinet approved this measure on Monday. However, the exact provisions for C and D grade job reservations remain unclear due to the deletion of the initial post by the Chief Minister. Officials from the Labor Department confirmed that the bill will be presented and passed during the ongoing Karnataka assembly session.

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Historical context and previous recommendations:

The draft bill follows recommendations from the Sarojini Mahishi Committee, which suggested that large, medium, and small-scale industrial units with more than 50 workers reserve 65% and 80% of jobs in A and B categories, respectively, for Kannadigas, and 100% for C and D categories.

Additionally, the Kannada Language Comprehensive Development Act of 2022 proposed reservations for industries receiving tax exemptions and other state benefits, though no policy rules have been formulated yet.

Eligibility criteria for locals:

The bill defines a local candidate as any person born in Karnataka, staying in the state for the last 15 years, and proficient in reading and writing the Kannada language. Those seeking benefits under the bill must pass a language proficiency test conducted by a Nodal agency.

Provisions for non-compliance:

Companies unable to meet the quota due to a lack of qualified local candidates are required to train existing employees within three years, in collaboration with the government or its agencies. Establishments may also request a relaxation of the Act's provisions from the government.

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However, such relaxation must not reduce the local candidate requirement below 25% for management and 50% for non-management roles. The bill states, "Such orders passed by the Government shall be final: Provided that, the relaxation provided under this section shall not be less than 25 per cent for management category and 50 per cent for non-management categories."

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