Amid obvious backlash, the Karnakata government has wisely put on hold a contentious Bill reserving jobs for natives in the private sector. The state cabinet’s decision to mandate companies to appoint 50% of local candidates in management categories and 75% in non-management categories is a hugely regressive step. Chief Minister Siddaramiah also said in his now-deleted tweet that the cabinet had also approved a legislation that made it mandatory for all private industries to hire only Kannadigas in group “C” and “D” jobs. Apart from the fact that the government has no business in interfering in hiring decisions made by private companies, two clauses of the Bill seeks to give bureaucrats overriding powers to play god. One of them says some relaxation can be provided only after these establishments apply, and the government may pass “appropriate orders after due enquiry”. A nodal agency will also be set up under the Act, which will verify reports on people employed by industries. It is simply unbelievable that any state government can come up with a proposal that enables government officers to sit on recruitment committees of the private sector. This is like bringing back the worst form of an Inspector Raj.
This is absurd and myopic thinking. The move also goes against the fundamental principle that people must be free to travel and work where they wish to. Reservation for the economically and socially backward sections is one thing, but seeking to introduce reservation for a linguistic majority is unprecedented. Businesses should never be forced to compromise on merit and profitability at the altar of the government’s political agenda. The fundamental question is why would anyone choose Karnataka for private business enterprise if the state did not provide the freedom to choose one’s employees.
It’s surprising that Karnataka appears to have not heeded any lessons from the Punjab and Haryana High Court’s earlier decision to quash the Haryana State Employment of Local Candidates Act, 2020, that provided for 75% reservation to state domiciles in the private sector in jobs that offer a monthly salary of less than `30,000. The court stated that it was beyond the purview of the state to legislate on the issue and restrict private employers from recruiting people from the open market. It also held that the Act was violative of equality guaranteed under Article 14 and freedom under Article 19 of the Constitution. The court also said the Act militates against the rights of citizens of the rest of the country, and that such Acts could lead to other states coming up with similar enactments, in effect putting up “artificial walls” throughout India.
Karnataka is home to more than 5,500 information technology (IT) and IT-enabled services (ITeS) companies and around 750 multinational companies. The IT and ITeS industry in the state provides direct employment to more than 1.2 million professionals and generates over 3.1 million indirect jobs. Karnataka’s share of software exports, nearly 40% of the country’s total, solidifies its position as a global IT powerhouse. The state also hosts around 40% of global capability centres in India. Workers move to other states seeking job opportunities that are relevant to their skills and abilities. States should not build walls and impose restrictions that prevent job seekers from other states from accessing opportunities. If states like Karnataka are truly concerned about protecting workers’ rights, they should avoid knee-jerk reactions like these and prioritise investing in education, entrepreneurship, and upskilling initiatives to bolster local talent development. In any case, protectionism in the labour market can never be the answer. After all, talent hubs aren’t built through reservation policies.