After backlash, Karnataka puts job quota-for-locals bill on hold

The government plans to revisit and decide on the bill in the coming days after conducting broader consultations.

The Karnataka government on July 17 decided to delay the implementation of a bill mandating job reservation for locals in the private sector.

"The bill intended to implement reservation for Kannadigas in private sector institutions, industries and enterprises is still in the preparation stage. A final decision will be taken after comprehensive discussion in the next cabinet meeting," said a statement from Chief Minister's office on July 17.

This comes against the backdrop of the National Association of Software and Service Companies (Nasscom) and industry leaders demanding the scrapping of the bill.

Also, read: Nasscom wants Karnataka to scrap bill reserving jobs for locals in private sector

"The government plans to revisit and decide on the bill in the coming days after conducting broader consultations," Siddaramaiah said.

Karnataka cabinet approved the draft State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, mandating 50 percent of management jobs and 70 percent of non-management roles to be reserved for local candidates (Kannadigas).

The state cabinet also approved a 100 percent quota for Kannadigas in Group C and Group D jobs (blue-collar workers) in the private sector.

Also, read: Karnataka cabinet approves draft bill mandating 50% reservation for locals in management jobs, 70% in non-management categories

Meanwhile, state ministers Dinesh Gundurao, Krishna Byregowda, Priyank Kharge, Santhosh Lad, and Chief Minister's Legal Adviser Ponnana will hold a press conference on July 18.

Industries Minister MB Patil said, "The CM has taken due cognizance. The bill is withheld pending further consultations and due diligence. Industry leaders need not panic, as assured. The government is committed to creating more jobs, particularly for Kannadigas, in a more amicable manner."

Sources told Moneycontrol that IT-BT Department, as well as the Department of Industries and Commerce, were not consulted on the bill drafted by the State Labour Department before it was sent to the cabinet meeting.

Also, read: Karnataka quota-for-locals bill: IT-BT and Commerce and Industries departments kept in the dark