Karnataka 100% quota row: What is controversial bill? What industry leaders said that led Siddaramaiah to delete tweet

Karnataka 100% quota row: The Karnataka cabinet on Tuesday approved a bill mandating 100 per cent reservation for Kannadigas in the private sector for Group C and D posts. The decision was taken at the cabinet meeting held on Monday. Here is all you need to know about the bill and the controversies around it.

What does the bill say? 

The bill seeks to reserve 50 per cent of management jobs and 75 per cent of non-management jobs for locals in the private sector. The Karnataka government is also contemplating 100 per cent reservation for locals in ‘C&D’ grade government jobs. The bill is called the State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024.

The bill drafted by the labour department claimed that the jobs of industries operating in the state are going to the states of North India. The bill states that industries that get infrastructure, including land and water, from the state should give reservations for jobs to the locals, and this has been approved in the cabinet meeting.

What did Karnataka CM Siddaramaiah say about the bill?

Karnataka Chief Minister Siddaramaiah on Tuesday posted on X that the state government's priority was the welfare of Kannadigas.

"The cabinet meeting held yesterday approved a bill to make it mandatory to hire 100 per cent Kannadigas for ‘C and D’ grade posts in all private industries in the state."

Noting that his government is pro-Kannada, he added, “It is our government's wish that the Kannadigas should avoid being deprived of jobs in the land of Kannada and should be allowed to build a comfortable life in the motherland. We are a pro-Kannada government. Our priority is to look after the welfare of Kannadigas.”

He later deleted the controversial tweet. 

How did the industry react to the move? 

On Wednesday, several industry leaders in the state objected to the move, saying that it was "discriminatory" and raised apprehensions that the tech industry might suffer.

Nasscom and its members expressed disappointment and concerns regarding the passage of the Karnataka State Employment of Local Industries Factories Establishment Act Bill. According to CNBC-TV18, Nasscom said bill will hamper growth of tech industry and impact jobs. They said the Bill “could force cos to relocate and seeks urgent meeting for industry reps with state authorities”.

Mohandas Pai, chairman of Manipal Global Education Services, said the bill is "fascist" and unconstitutional.

"This bill should be junked. It is discriminatory, regressive and against the constitution @Jairam_Ramesh is govt to certify who we are? 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 the private sector? People have to take a language test?" Pai said in a post on 'X'.

Kiran Mazumdar-Shaw, Executive Chairperson of Biocon Limited, said the state should not let this bill affect its leading position in the domain of technology and there should be exemptions for highly skilled recruitment.

"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," Shaw posted on 'X'.

RK Misra, Co-Chairman of ASSOCHAM Karnataka and Co-Founder of YULU, called the bill shortsighted and said that if a government officer is appointed in every private company to monitor its implementation, it will scare away Indian IT and Global Capability Centres.

"Another genius move from Govt of Karnataka. Mandate LOCAL RESERVATION & APPOINT GOVT OFFICER IN EVERY COMPANY to monitor. This will scare Indian IT & GCCs. Short-sighted," Misra posted on 'X'.

Before the rules are decided, industry will be consulted: Karnataka ministers

Meanwhile, defending the bill, Karnataka minister Priyank Kharge has said, "The bill has been brought in by the labour department. They are yet to consult with the industry, the Minister of Industry and the Department of Information Technology. I am sure that before coming up with the rules of the bill, they will have due consultations with the respective ministries and more importantly, a wider consultation with the industry. So there is no need to panic. We are going to safeguard the jobs for the state as well as encourage investments in the industries with their consultation..."

State Commerce and Industries Minister MB Patil also confirmed that there will be wide consultations to resolve the confusion and ensure that the interests of Kannadigas and industries are protected.

"I have seen that many people have apprehension regarding this...We will resolve this confusion...We will sit with the CM and resolve this so that it does not have any adverse effect...," ANI quoted Patil as saying on Wednesday.