Bengaluru:

Karnataka Chief Minister Siddaramaiah on Thursday said his government has decided to withhold the bill mandating job reservation for Kannadigas in the private sector due to “certain confusion.” 

He said the bill will be taken up for discussion in the next cabinet meeting to clear the doubts.

“On Monday, complete discussion (on the topic) could not take place in the cabinet meeting. By then reports had appeared in the media,” he told the Karnataka assembly.

“There was some confusion. We will clear those confusions in the next cabinet meeting. Let’s have a detailed discussion.” The Chief Minister was replying to Leader of the Opposition R Ashoka’s demand to clarify the state government’s stand on the bill.

He said the Chief Minister changed his message on ‘X’ thrice.

Ashoka recalled that Siddaramaiah in his first post said that the cabinet has decided 100 per cent reservation for Kannadigas in the private sector and then deleted it.

The Chief Minister then posted another message saying that there would be 50 per cent reservation in the management category and 70 per cent in the non-management category for Kannadigas.

“Finally, you announced putting the bill on hold. There appears to be a Tughlaq government in Karnataka,” he said.

In his reply, the Chief Minister said, “There is no Tughlaq government, but Siddramaiah government. We will take up the bill in the next cabinet meeting.” The state cabinet had on Monday cleared the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024′, which makes it compulsory for private firms to reserve jobs for Kannadigas.

“Any industry, factory or other establishments shall appoint fifty per cent of local candidates in management categories and seventy per cent in non-management categories,” the bill read.

If the candidates do not possess secondary school certificates with Kannada as a language, they should pass a Kannada proficiency test as specified by the ‘Nodal Agency’, it added.

The nodal agency will have the power to call for any records information or documents in the possession of an employer or occupier or manager of an establishment to verify the report.

The government may appoint an officer not below the rank of Assistant Labour Commissioner as the authorised officer for the purposes of compliance of the provisions of the Act.

Any Employer or Occupier or Manager of an Establishment, who contravenes the provisions of this Act should be liable for a penalty between Rs 10,000 to Rs 25,000.

The move drew flak from the industry.

NASSCOM even cautioned that the companies will move out of Karnataka.

Ministers quickly issued a statement assuring companies that their interest will be protected.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

PhonePe CEO and co-founder Sameer Nigam has opposed the Karnataka government’s private jobs quota bill, which aims to reserve a significant portion of jobs in the private sector for locals.

In a post on X, Mr Nigam, who said he has created over 25,000 jobs across India through his companies, argued that the bill was unfair to people like him who have lived in multiple states due to their parents’ work.

“I am 46 years old. Never lived in a state for 15+ years. My father worked in the Indian Navy. Got posted all over the country,” he wrote on X.

He questioned the bill, asking whether his children, who have grown up in Karnataka, “don’t deserve jobs in their home city,” despite him creating employment opportunities all over the country.

“Shame,” he added.

I am 46 years old. Never lived in a state for 15+ yrs

My father worked in the Indian Navy. Got posted all over the country. His kids don’t deserve jobs in Karnataka?

I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city?

Shame.

— Sameer.Nigam (@_sameernigam) July 17, 2024

What Is Karnataka Job Quota Bill?

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was proposed on July 16. The bill mandated reserving 50 per cent of management-level jobs and 70 per cent of non-management-level jobs for locals.

State Industries Minister M B Patil said that the policy aims to protect the interests of Kannadigas while also considering the needs of industries.

IT Minister Priyank Kharge said that the bill’s primary objective is to create more job opportunities for locals.

Why Karnataka Job Quota Bill Is Being Opposed

Industry stakeholders believe the bill could have far-reaching consequences for the state’s economy, startups, and IT companies. The industry body NASSCOM said that the restrictions could drive startups and IT companies out of the state, leading to a loss of investment and jobs.

The bill could lead to a scarcity of skilled talent in the state, as companies may struggle to find local candidates with the required skills, as per reports.

TV Mohandas Pai, the partner at Arin Capital and former CFO of Infosys, called the bill “regressive, unnecessary, draconian, unconstitutional, and illegal”.

Biocon chairperson Kiran Mazumdar-Shaw said that the bill could hurt the state’s leading position as a tech hub, adding it may affect the availability of skilled talent. While IT giants may have the resources to shift to neighbouring states, smaller players based in Bengaluru may not have the same option, which could lead to a disadvantage for them.

Following this severe backlash, the bill has now been put on hold.

New Delhi:

Kiran Mazumdar-Shaw, the founder of pharmaceutical giant Biocon, on Wednesday opposed the proposal to reserve private jobs for local hires in Karnataka, which houses the country’s information technology hub Bengaluru.

Taking to her official X account, Ms Shaw said highly skilled recruitment must be exempted from the Karnataka government’s decision mandating reservation for Kannadigas in private firms.

She also said the job reservation for locals must not affect the state’s leading position in the technology sector.

“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, said wrote on X.

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. @siddaramaiah@DKShivakumar@PriyankKhargehttps://t.co/itYWdHcMWw

— Kiran Mazumdar-Shaw (@kiranshaw) July 17, 2024

Her post drew a response from Karnataka’s Minister for Information Technology and Biotechnology Priyank Kharge, who said “no detrimental rules or laws will be enforced without due consultations with stakeholders”.

“Karnataka has always led the nation in economic growth and we continue to do so,” he said.

Citing that Karnataka is the fourth largest technology cluster in the world, number 1 in the India Innovation Index, and first in IT service exports, he said the state has achieved “these milestones and many more because our Government consistently engages with all stakeholders to draft policies and schemes that boost investments and create more employment opportunities.”

“As always, we will consult with industries, industry bodies, and thought leaders to ensure we foster a favorable environment for investments and job creation for locals while addressing the needs of the global workforce,” the Congress leader said.

Karnataka is the 4th largest technology cluster in the world and are leaders in the country in many verticals.

We are No. 1 in India Innovation Index

1st in IT service exports

Top 3 in FDI inflows

We have 40% share in Electronics Design in India

In Machine Tools… https://t.co/Sh2fJkE5rG

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) July 17, 2024

Many other leading figures from the industry also spoke out against the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, which was approved by Chief Minister Siddaramaiah-led cabinet on Monday.

The bill requires firms in India’s IT capital to prioritise local hires for 70 per cent of non-management roles and 50 per cent of management-level jobs. The state government, however, paused the bill after backlash.

Row Over Karnataka’s Job Quota Bill

Former Infosys chief financial officer Mohandas Pai said the bill was “discriminatory” and “regressive”.

“This bill should be junked. It is discriminatory, regressive, and against the Constitution. This is a fascist bill as in Animal Farm,” he said on X.

The National Association of Software and Service Companies (NASSCOM) also expressed disappointment and concern over Karnataka’s new bill mandating reservation for locals in private sector jobs.

In a statement, it said, “Nasscom and its members are disappointed and express deep concern regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024.”

“Restrictions could force companies to relocate as local skilled talent becomes scarce,” it said.