War of words over Karnataka Bill on local quota in private sector jobs

Succumbing to mounting criticism from industry and facing questions from within the Congress party, the Karnataka government on Wednesday evening announced that it was putting on hold its move to reserve private sector jobs for Kannadigas.

Karnataka CM Siddaramaiah said the Bill is still at its preparatory stage. In a post on X, he said a final decision will be taken after comprehensive discussion in the next cabinet meeting.

State Commerce and Industries Minister MB Patil said the CM has "due cognizance" and the Bill "is withheld until further consultations and due diligence". Patil said that industry leaders need not panic. "The government is committed to further creation of jobs and furthermore for Kannadigas, however, in a more amicable manner."

Earlier in the day, the Congress-run state government’s move to reserve jobs for locals was criticised by a Union minister as “regressive and bad economics” and at least two industries ministers of neighbouring states Andhra Pradesh and Kerala jumped into the controversy to invite Karnataka's industry to relocate to their respective states.

In response to a statement by the National Association of Software and Service Companies (Nasscom) expressing “deep concern” about the Karnataka State Employment of Local Industries Factories Establishment Bill, 2024, Andhra Pradesh IT, Communication and Industries Minister Nara Lokesh said Karnataka’s IT industry was welcome to relocate to Visakhapatnam.

“We understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI and data centre cluster at Vizag,” Lokesh, who is the son of Andhra Chief Minister N Chandrababu Naidu, said. “We will offer you best-in-class facilities, uninterrupted power, infrastructure and the most suitable skilled talent for your IT enterprise with no restrictions from the Government. Andhra Pradesh is ready to welcome you. Please get in touch,” Lokesh posted on X.

Kerala Industries Minister P Rajeev said, “Invest in Kerala. Employee talent and merit are the only criteria for recruitment. It is the right time for companies to discover Kerala with its highly skilled talent pool, the best climate and a hassle-free environment. Embrace this opportunity.”

Earlier in the day, Union minister of state Jayant Chaudhary, who has the independent charge of skill development and entrepreneurship portfolio, said Karnataka’s move was unconstitutional. “Karnataka state mandating up to 100 per cent reservations in the private sector for locals is regressive and bad economics. I have spoken on this previously as well and I believe such measures by any state violate constitutional rights of all Indians,” Chaudhary, who heads the Rashtriya Lok Dal, a constituent of the ruling National Democratic Alliance, said.

But Bharatiya Janata Party (BJP) leaders, whether in Karnataka or in the national capital, were silent on the issue. The BJP-Jannayak Janta Party coalition government in Haryana in 2020 had passed a Bill to provide for 75 per cent reservation for locals in private sector jobs. The Punjab and Haryana High Court quashed it in November 2023. Congress leaders, such as Manish Tewari, who is now an MP from Chandigarh, had welcomed the court judgement last year, but maintained silence on the Karnataka government’s announcement.

Sources within the Congress, including those who have been members of the teams that drafted its 2019 and 2024 Lok Sabha poll manifestos, said the Karnataka government decision lacked any empirical basis. “To my knowledge, no study was undertaken. There is no empirical evidence to support the move,” a Congress strategist, who didn’t want to be named, said.

In 2016, the first Siddaramaiah-led Congress government planned to reserve 100 per cent of groups C and D jobs in the private sector for Kannadigas. The government’s law department had shot it down, saying the move violated Articles 14 and 16 of the Constitution.