The bill has been approved by Karnataka Cabinet, mandates 50% reservation for locals in management jobs and 75% in non-management positions in industries, factories and other establishments.
- Earlier, several states such as Haryana, Andhra Pradesh, etc. have enacted similar legislation to ensure reservations for locals in private sector.
- The Act enacted by Haryana was declared unconstitutional by the Punjab and Haryana High Court as it violated Part III (Fundamental rights) and the constitutional morality principle
Why states are pushing for local Reservations in the Private Sector?
- Private sector is the biggest job creator, thus reservation can fulfill the commitment to social justice.
- It is also argued that Jobs created in a state should be offered first to those who belong to that State.
- The private sector, benefits from the government ie. tax concessions, cheaper loans etc. thus, can be asked to implement affirmative policy.
Concern Raised
- Affects ease of doing business, may push businesses to migrate due to a lack of skilled workforce.
- Fuels sons-of-the-soil syndrome (preferring locals) in other states as well.
- Violates Right to equality under Articles 14, 15, and 16 and Right to freedom to practice any profession or to carry on any occupation, trade, or business (Article 19(1) (g)).