Karnataka Government Puts Controversial Job Reservation Bill on Hold Amid Industry Pushback

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Synopsis

"We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas,” CM Siddaramaiah previously said, defending the legislation

The Karnataka government has decided to temporarily halt the implementation of the contentious job reservation bill following substantial opposition from industrial sectors. The bill sought to enforce 50 percent reservation for administrative posts and 75 percent for non-administrative posts for Kannadigas in private industries.

Chief Minister Siddaramaiah announced that the bill would be revisited, with further actions to be determined in the coming days. "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," the Chief Minister stated on social media platform X.

Initially, the government defended the move, emphasising the importance of providing job opportunities for Kannadigas. "We are a pro-Kannada government. Our priority is to look after the welfare of the Kannadigas,” Siddaramaiah had previously said.

The Karnataka State Employment of Local Candidates in the Industries, Factories, and Other Establishments Bill, 2024, was passed in a Cabinet meeting on Monday. The bill mandates that any industry, factory, or establishment appoint 50 percent of local candidates in management roles and 70 percent in non-management roles.

The Bill defines "local candidates" as individuals who meet specific criteria, including:

  • Being born in Karnataka or having lived in the state for at least 15 years.
  • Possessing the ability to speak, read, and write Kannada legibly, as demonstrated by passing a proficiency test administered by a designated nodal agency.

The Bill also categorises candidates into two groups:

  • “Management" category: This includes individuals holding supervisory, managerial, technical, operational, or administrative positions in factories, companies, or establishments.
  • "Non-management" category: This comprises individuals in clerical, unskilled, semi-skilled, or skilled roles within the IT-ITES industry.

Additionally, candidates lacking secondary school certificates with Kannada as a language would be required to pass a Kannada proficiency test. This provision has drawn criticism from industry leaders who fear that Bengaluru could lose skilled talent.

Notably, Karnataka’s move mirrors a similar bill introduced by the Haryana government, which mandated 75 percent reservation in private sector jobs for state residents. However, the Punjab and Haryana High Court struck it down on November 17, 2023.

Amid concerns that industries might relocate if Kannada proficiency becomes mandatory, Andhra Pradesh minister Nara Lokesh extended an invitation to businesses to move to Andhra Pradesh, promising superior facilities and a skilled workforce without government restrictions. "We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data center cluster at Vizag," Lokesh posted on X.