Industry bodies argued that reservation hurts competitiveness and said the state government can give a 25 per cent subsidy to the industry as an incentive for each local hired.
With the Haryana government notifying the law providing 75 per cent reservation to locals in private jobs, India Inc on Saturday called for a re-look at the legislation saying it will lead to multinational firms moving out of the state. Industry bodies argued that reservation hurts competitiveness and said the state government can give a 25 per cent subsidy to the industry as an incentive for each local hired.
In a strongly worded response, the Confederation of Indian Industry (CII) said, “At a time when it is important to attract investments at the state level, governments should not impose restrictions on the industry. Reservation affects productivity and industry competitiveness.” “We hope the government re-looks the legislation or at least ensures the rules are fair. As one country, there should be no imposition or restriction,” it added.
The industry body emphasised that with Prime Minister Narendra Modi’s vision of ‘Ek Bharat Shrestha Bharat’, which focuses on strengthening the unity and integrity of India, “we should not see such restrictive practices”. Another body PHD Chamber of Commerce and Industry (PHDCCI) said it is of the view that any Indian should be allowed to work in any state of India without any restrictions.
“The 75 per cent reservation will result in moving out of tech companies, automotive companies, especially MNCs (multinational companies) as these are highly skilled manpower-based companies.
PHDCCI President Pradeep Multani said, “The state government can give 25 per cent subsidy to industry and trade for each local hired. Let this be an incentive to hire locals. There should be no compulsion.”
The Haryana government on Saturday said the Employment of Local Candidates Act, 2020, which provides a quota for local people in private sector jobs that offer a salary of less than Rs 50,000 a month, will be implemented in the state from January 15, 2022. The Act covers private companies, societies, trusts and partnership firms in the state.