Job Reservation in Private Sector for locals
Context:
- Haryana high court has stayed the reservation provision for local youth in industry.
Other States providing the reservation:
- Earlier, MP government had provided for the reservation of 70% of jobs in 2018.
- Andhra Pradesh had provided for the 75% of the private jobs in all categories which is sub-judicial in nature.
- Karnataka government had also provided for the 70% reservation in the private sector in 2020.
Constitutional mechanism for reservation:
|
Article |
Provision |
|
16 (1) |
Equal opportunity for all the citizens in situations related to employment and appointment. |
|
16 (2) |
No discrimination is allowed on the basis of religion, race, caste, sex, place of birth, descent and domicile |
|
16(3) |
Parliament can provide for residency requirement for jobs. |
Positives:
- It will create job opportunities for local talents.
- It will develop industry linkages with the Skill India mission thus enabling more skilled manpower.
- It will create a healthy competition between states for industrialization and lead to an inclusive growth.
- Providing jobs in lieu of the land is the most basic a company can do.
- It will ensure that wages of unorganized sectors don’t go down because of the migration of labor from other states.
Negatives:
- It will increase the cost of compliance for a company. Bigger corporates may shy away from investment in such state.
- One Nation, One market was the theme of GST. Such reservations distort the theme by creating artificial barriers.
- It may be unconstitutional in nature. Constitution provides for equality in employment and state can provide reservation for SC, ST, women and social & educationally backward caste. Local residential conditions are prescribed by Parliament only.
- It is populist in nature and will create unhealthy competition among Such competition will only create artificial barriers for migration eventually curtailing the cultural mixing.
- Definition of locals have not been specified.
- In the era of Ease of doing business, such legislations are unnecessary intervention by the government in economy.
Way Forward:
- Supreme Court needs to clearly provide the guidelines for the reservation of locals in the private sector while considering viewpoints of all the stakeholders.
- Rather than providing for the reservation, government can provide for the skill upgradation and voluntary allowance for the unemployed.
- Government must focus on the better education and better health thus leading to development of human capital.
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