The Karnataka bill reserves jobs for locals, impacting major companies like Google and Intel. Announced by CM Siddaramaiah, it faces backlash from industry bodies like Nasscom.
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The Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, reserves 50% management and 75% non-management private sector jobs for locals.
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CM Siddaramaiah initially declared 100% job reservation for Kannadigas in C and D job categories, but the post was deleted after facing backlash.
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The revised bill proposes 50% reservation for management positions and 75% for non-management roles, plus 100% reservation for C and D grade jobs.
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Eligible locals are defined as those born in Karnataka, domiciled for 15 years, and proficient in reading and writing Kannada.
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Companies must report compliance to a Nodal Agency. Violations incur fines from ₹10,000 to ₹25,000, with additional daily fines for ongoing breaches.
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Companies must train local employees within three years or seek exemptions, ensuring no less than 25% for management and 50% for non-management roles.
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Nasscom and industry leaders criticize the bill as unconstitutional and discriminatory, fearing it will drive away companies and stifle startups.
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The IT industry, valued at over $245 billion, worries the bill will limit opportunities for locals due to an influx of non-local skilled workers.
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CM Siddaramaiah emphasizes a pro-Kannada stance, aiming to prioritize Kannadigas' employment opportunities amidst industry concerns.
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The Karnataka job reservation bill is a contentious issue, balancing local employment priorities with industry concerns over economic impact and talent scarcity.