As jobs-for-locals push rattles industry, Karnataka Minister promises greater consultation

Minister for Large and Medium Industries M.B. Patil appears to be on the back foot after a Bill mandating reservation for locals garnered adverse reactions from some industry heads in the State.
| Photo Credit: Murali Kumar K

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.

What the bill says

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.

Reactions of some industry veterans

“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.

Mr. Pai, who also took to X to air his views, called the bill “discriminatory, regressive, and against the Constitution”. In a strongly worded message on X, he said: “This is a fascist bill as in Animal Farm, unbelievable that @INCIndia can come up with a bill like this – a govt officer will sit on recruitment committees of private sector? People have to take a language test?”

CM withdraws tweet

Following the uproar, on July 17, Chief Minister Siddaramaiah withdrew his tweet on reservations for locals in the private sector.

Labour minister Santosh Lad told The Hindu that the news regarding 100% reservation for Kannadigas in grade C and D jobs is “wrong information”.

“The bill only mandates 50% reservation in management positions and 75% reservation in non-management jobs for local candidates,” he said.