The controversial Karnataka employment reservation bill

Source: The post the controversial Karnataka employment reservation bill has been created, based on the article “Wrongheaded policy: The Karnataka Bill on reserving jobs for locals is self-defeating” published in “The Hindu” on 20th July 2024

UPSC Syllabus Topic: GS Paper2- mechanisms, laws, institutions and Bodies constituted for the protection and betterment of vulnerable sections.

Context: The article talks about Karnataka’s draft “State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024,” which aimed to reserve jobs for locals but faced legal and industry backlash. It argues that fair labor practices for all workers, not just local ones, are a better solution.

For detailed information on Local Reservation in Private Job read this article here

Why is the Proposed Karnataka Bill Controversial?

1. Local Reservation Requirement: The proposed Karnataka Bill mandates that 50% of management and 70% of non-management positions in industries be reserved for local candidates. This is seen as restrictive by businesses.
2. Legal Precedents: Similar laws in other states like Haryana and Andhra Pradesh have faced legal challenges. The Punjab and Haryana High Court quashed Haryana’s law, citing violations of constitutional rights to equality (Article 14) and freedom (Article 19).
3. Industry Opposition: The Bill was “temporarily withheld” after significant pushback from industry heads and trade bodies, indicating strong resistance from the business community.
4. Comparative Examples: Andhra Pradesh’s similar law is still under judicial review, and Jharkhand’s has not been implemented, suggesting ongoing controversy and legal complications with such initiatives.

What Should be Done?

1. Enforce Labor Rights: Ensure fair treatment and protect all workers, including migrants, from exploitation.
2. Address Exploitative Practices: Employers should not make migrant workers work longer hours for lower pay without benefits.
3. Create a Level Playing Field: Provide equal opportunities for local and migrant workers by curbing unfair labor practices.
4. Avoid Protectionism: Job protectionism for local workers is not a solution.
5. Legal Compliance: Follow constitutional provisions like Article 16(3), which limits reservation based on residence to public employment and requires Parliament’s approval.

Question for practice:

Evaluate the main reasons for the controversy surrounding Karnataka’s draft “State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024.