As job reservation for locals rattles private sector in Karnataka, Industries Minister promises greater consultation before presenting Bill in legislature

A Bill cleared by the Karnataka Cabinet mandates that industries, factories and other establishments appoint local candidates in 50% of management positions and 70% in non-management positions.

A tweet by Karnataka Chief Minister Siddaramaiah about his Cabinet clearing a Bill mandating reservation for locals garnered adverse reactions from some industry heads in the State, forcing Minister for Large and Medium Industries M.B. Patil on his back foot.

Mr. Patil promised that a team comprising the Law Minister, IT-BT Minister, Labour Minister, and himself will discuss the issue with the Chief Minister before passing the bill.

“There is no doubt that protecting the interests of Kannadigas is of paramount importance. However, industries also need to thrive. It should be a win-win situation for both. Keeping this in mind, any confusion will surely be addressed,” he said.

The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, was cleared in the Cabinet meeting chaired by Chief Minister Siddaramaiah on July 15. 

The Bill mandates that industries, factories and other establishments appoint local candidates in 50% of management positions and 70% in non-management positions.

The Bill, reviewed by The Hindu, however, has no provision for 100% reservation in grade C and D jobs. Nevertheless, the Chief Minister’s tweet set off a row eliciting strong reactions from industry leaders, such as Kiran Mazumdar Shaw and Mohandas Pai.

“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,” remarked Ms. Shaw on X.