On Tuesday, Chief Minister Siddaramaiah announced a plan for 100 percent reservation for Kannadigas in all Group C and Group D jobs in private companies.
However, the Karnataka government has now paused and will further study the bill that mandates private firms in the state to reserve jobs for Kannadigas.
The bill, approved on Monday, aimed to prioritize local hires for 70 percent of non-management roles and 50 percent of management-level jobs in firms located in India's IT capital.
Chief Minister Siddaramaiah clarified on X that the bill intended to enforce reservation for Kannadigas in private sector institutions, industries, and enterprises is still under preparation. A final decision will be taken after comprehensive discussions in the next cabinet meeting.
The announcement initially made by the Chief Minister on Tuesday evening stated that his "pro-Kannada government" would ensure all Kannadigas get opportunities to lead comfortable lives and avoid being deprived of jobs in their homeland. However, his X post mentioned 100 percent reservation at certain levels, sparking a significant backlash.
Business leaders, including Biocon's Kiran Mazumdar-Shaw, and the opposition, led by the BJP, criticized the Congress government. However, Union Minister Ramdas Athawale expressed support, backing measures that benefit backward classes, including OBC, SC, and ST communities.
The Chief Minister's post was deleted after clarification from Labour Minister Santosh Lad. He explained that the proposed policy includes 50 percent reservation at the management level and 70 percent at the non-management level. If suitable skilled candidates from this pool are unavailable, companies can hire from outside the state. Lad emphasized that the government is trying to enact a law to give preference to locals if skilled labor is available in Karnataka, insisting there is no talent shortage in the state.
The quota proposal received mixed reactions. Some businesspersons labeled it "discriminatory," while others, like Mazumdar-Shaw, acknowledged the need to secure jobs for locals but added reservations. Nasscom, representing India's $200 billion technology industry, called for the bill's withdrawal, arguing it could drive companies away due to local skilled talent becoming scarce.
Addressing these concerns, Lad stated he would engage with the business community, respecting their apprehensions and views. The Labour Department drafted the proposed bill, claiming jobs were largely being given to people from northern states who then settled in Karnataka. The policy suggested that Karnataka-based companies benefiting from state-provided infrastructure should reserve jobs for locals.
The bill reflects recommendations by the Sarojini Mahishi Committee, which proposed that large, medium, and small-scale industrial units with over 50 workers reserve 65 and 80 percent of Group A and Group B jobs for Kannadigas, respectively. All Group C and Group D jobs were to be reserved for Kannadigas according to the committee's report.