Bengaluru: Hours after the Karnataka Cabinet cleared a bill proposing reservations for locals in the private sector, the state government has decided to put the bill on hold.
The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024 — mandating appointment of Kannadigas to 50% of management positions and 75% of non-management positions in the private sector – was likely to be tabled on Thursday in the state Assembly.
But following huge backlash from leaders in the industry, the government reacted quickly and opted to have a relook at the bill before it is tabled in the Assembly.
Karnataka Chief Minister and Congress leader Siddaramaiah took to microblogging site X (formerly Twitter) to inform about the temporary hold on the Karnataka job reservation bill.
“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,” Karnataka Chief Minister Siddaramaiah wrote on X.
After Chief Minister Siddaramaiah and other Congress leaders and ministers in Karnataka hailed the bill and called the state government ‘pro-Kannada’, the move was criticised by the IT industry, which was of the opinion that such a bill would hamper growth of tech industry in Bengaluru and impact jobs.
The National Association of Software and Service Companies (NASSCOM) said in a press release that its members are seriously concerned about the provisions of the bill and urged the state government to withdraw it.
“The bill’s provisions threaten to reverse this progress, drive away companies and stifle startups, especially when more global firms (GCCs) are looking to invest in the state. In today’s highly competitive landscape, knowledge-led businesses will locate where talent is as attracting skilled workers is crucial for success… For states to become a key technology hub a dual strategy is key – magnet for best talent worldwide and focuses investment in building a strong talent pool within the state through formal and vocational channels,” NASSCOM stated.
Deputy CM DK Shivakumar, who also had waxed eloquent on the bill, was also forced to adopt a softer tone later in the day.
“We will discuss with them… We are more worried than both the employer and the employee. We will see where we can accommodate Kannadigas,” he said.
