Karnataka reservations a death blow by CM Siddaramaiah

 

Chief Minister Siddaramaiah led Congress government in Karnataka is gearing up to bring in drastic reservations for Kannadigas and backward communities in the state. 

 

Late last year, the Chief Minister initiated a debate when he announced that the government will implement 100% quota for the Kannadigas in blue-collar jobs in the private sector, expect IT and biotech firms that get concessions under the Karnataka state industrial policy. 

 

To facilitate this the labour department of Karnataka also released the draft amendments of the Karnataka Industrial Employment (Standing Orders) Rules of 1961.

 

The labour minister also said that his department may take a lenient approach if private sector companies hire 70% Kannadigas on its white and blue collar jobs or 100% Kannadigas in the blue-collar jobs. 

 

Now, the CM has confirmed that he will send the recommendation to the central government to implement 50% to 70% quota for the backward communities. 

 

Making his stand firm and clear, he said, “I will not compromise on any issue which is against social justice and shall continue with the principles which I believe in even if I were to lose power.” 

If implemented what to expect: 

 

Reservation or quota is a long-standing issue in India and there seem to be no end to the discussions, debates, and conversations. But, the reservation proposals made by the Karnataka government can have a deathly impact on the state's economy. 

 

How?

 

First, if these reservations are implemented then it will set precedence for other states to demand higher quotas in private sectors making it impossible for the industries in this sectors to function efficiently. 

 

The global companies operating in India who generates employment opportunities will also have to adhere to these reservations making it difficult for them to operate here.

 

Second, private sector industries survive and thrive on the merit and resourcefulness of their employees. Since they are profit-oriented businesses, such quota system will mandate them to compromise with their hiring policy. 

 

If private sector companies suffer from losses, they will look for an easy way out which is leaving Karnataka for good. This will impact GDP of the state that has a substantial contribution from the private sector.

 

Third, once the reservation drives out the competition in blue collar jobs, it will also impact the salary aspects in these jobs. There will be no competition, so there will be no competitive salary, and this means stagnancy in wage in the blue collar jobs. 

 

Fourth, since reservation in private sector will lead to forcing the non-natives out of the state, this will also impact other sectors including real estate and residential property market. 

 

The property market in cities like Bengaluru is driven by the employees coming from out of state, for example, South Bengaluru is scoring high on property market because of employment hubs located there. If reservation forces them to leave the city or the state then there will be no buyers. 

 

Fifth, the casted-based 50% to 70% quota will lead to reverse casteism wherein the supposed privileged class will soon need a reservation to protect their interests in various sectors. Also, such huge quota completely sabotages the merit and its necessity. 

 

The Hon'ble Supreme Court in Indra Sawhney judgment ruled that reservation 'of any manner' should not exceed 50%. But, Karnataka government seems determined to violet this apex court ruling.