Pvt job quota in Haryana miffs auto sector

State enacted a law mandating 75% reservation for locals in private jobs

New Delhi: The latest private workforce reservation bill in the State of Haryana has left automobile industry experts in a tight spot as it mandates 75% reservation in private jobs for the people from the State. The automobile industry and its allied sectors are concerned that the move might adversely impact the efficiency, overall production, operations, and revenue generation.

Speaking to Bizz Buzz, Binny Mehta, Director General, Automobile Components Manufacturers' Association of India (ACMA), said that the automobile industry standards should not be compromised with such reservation policies.

"The industry is based on merit, skills of the people and not on domicile. So, in some sense if we go by reservation process, then we are making the industry non-competitive. You're not picking up the talent, you are going by the reservation. Also, this is detrimental to the image of the State as an investment friendly destination and will create hurdles for ease of doing business," Mehta told Bizz Buzz.

As per the latest ease of doing business (EoDB) rankings for the Indian States, released by the Department for Promotion of Industry and Internal Trade (DPIIT) in September 2020, Haryana slipped down to rank 17 as compared to its position in 2016 with rank 3.

"In the last few years, the State hasn't attracted any significant automotive investments. The State should work on more industry-friendly policies and these are definitely not in the interest of making the industry globally competitive because an industry, as a sector, we are export-oriented, we export 25 per cent of the production in the components sector alone," Mehta elaborated further. The automotive industry in Haryana, a key automotive belt, accounts for 27 per cent of the State's GDP, and overall employment generation by the sector is approximately 10 lakh people. Experts believe that the policy might just compel the industries to relocate to a new State.

Haryana State Employment of Local Candidate Bill-2020, was passed by the Haryana Assembly on November 5, 2020, and Governor Satyadeo Narain Arya gave his assent to the Bill on February 26, 2021. The new law provides for 75 per cent employment quota to local candidates for jobs having a salary of less than Rs50,000 per month in various privately managed companies, societies, trusts, limited liability partnership firms and partnership firms, which employ 10 or more people.