No. PR- 006 April 12, 2021 New Delhi Reservation for Jobs in Haryana would be detrimental for industries: PHD Chamber Industry body, PHD Chamber of Commerce and industry, lists out suggestions as to how the reservations for local candidates should be implemented in the state so that the growth of the industry is not impacted The Haryana Cabinet has recently approved the legislation to provide 75 per cent reservation in private sector jobs for eligible candidates of state domicile. They have also earmark new jobs with a salary of less than Rs 50,000 per month to local candidates in privately managed companies, societies, trusts, limited liability partnership firms, and partnership firms. The Industry Body believes that the legislation bought about by the Haryana cabinet would have a disastrous effect on the state of Haryana for several reasons. Mr Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, explains that Hon’ble Prime Minister Shri Narendra Modi Ji, through the implementation of the programme, ‘Ek Bharat Shreshtha Bharat’ has taken an initiative to enhance interaction between people of different States and UTs to promote mutual understanding between States/UTs. Mr. Aggarwal states that firstly, the legislation violates article 14 which speaks of equality of all citizens and Article 19 that grants every citizen the right to reside and work in any part of the country. According to Mr. Aggarwal, investors and businesses source the best human resources available in the country to be competitive and successful. Hiring is done on the basis of merit and talent rather than the domicile of the candidates. He informs that the implementation of the legislation just when industrial and business activities are resuming after the COVID pandemic can result in exodus of investors from Haryana. According to Mr. Aggrawal, Gurugram has become the ‘Silicon Valley of North India’ and has become hub for large multinational corporations. He adds that companies investing in a state are recruiting people based on education, skill and expertise do not prioritise on the basis of state. While many industries are in the process of starting their ventures in rural areas, in such a case, it may not be easy to find skilled labour force across bands to fulfil the reservation rule. Industry requires a competitive market unless modern industry emerges in India, the nation cannot prosper, he said. He also pointed out that this would set a wrong precedent and may prompt other states to stop hiring youth from Haryana. The PHD Chamber has given a list of suggestions to ensure that youth from Haryana are adequately employed. 1. In order to ensure that adequate skilling takes place in the state of Haryana, it could be mandatory for such industries to induct a small percentage of their new employment towards apprenticeship and training of the Haryana youth. 2. To reduce the threshold salary level of Rs. 50,000/‐per month to Rs. 15,000/‐per month. This should be total cost to the company of the employees and not basic salary. This threshold can be increased marginally every year as and when the skill development takes place in the State. 3. The starting reservation should be not more than 20 –25 per cent which should be enhanced over the next decade, as and when the skill development of relevant technical & specialized areas take place. 4. The criteria of domicile should include the employees who are living and working in the State for the last 3 years as they have been contributing to the economic and socio‐economic ecosystem and development of the State. 5. Renewal of contracts of contractual employees should be outside the purview of this Act. 6. Special Economic Zones should also be exempted from this Act. The PHD Chamber believes that through these suggested measures, the industries and business houses in Haryana State can prosper, continue to have an edge in competition compared to the other states in the country and there would be further improvement in the ease of doing business for the state. Ends Media Division PHD Chamber of Commerce and Industry
PHD Chamber of Commerce and Industry, established in 1905, is a proactive National Apex Chamber working at the grass-root level and with strong national and international linkages.