The Federation of Indian Chambers of Commerce and Industry (FICCI) has warned that Haryana’s new hiring policy, aimed at tackling unemployment, in spells disaster for the state.
The Haryana State Employment of Local Candidates Bill, 2020 provides quota for local people in private sector jobs that offer a salary of less than Rs 50,000 a month. Only 10% of the recruitment by a company needs to be from the district in which it is located, and the rest of the quota can be filled from other districts in the state. The quota will initially apply for 10 years.
However, the FICCI says this will have a negative impact for Haryana’s industrial development and private investment. Uday Shankar, FICCI President, in a statement pointed out that investors and entrepreneurs need to source the best human resources available in the country to be competitive and successful. “To force them in such a regressive straight-jacket will force them to look beyond Haryana and this will ultimately hurt the interests of the state.”
Deepak Jain, president of the Automotive Component Manufacturers Association of India (ACMA), in a statement said such a move would not only adversel impact the ease of doing business in the state, but also be detrimental to Haryana’s image of an industry friendly destination. ACMA said the auto industry has invested over Rs 40,000 crore in the state, creates employment for one million people and accounts for more than 25% of the state’s GDP. The new Bill will affect firms like Maruti Suzuki and also impact business process outsourcing firms like Genpact.
While passing the new Bill, the state government said the law will discourage the influx of migrants seeking low-paid jobs, which has a significant impact on local infrastructure and leads to the proliferation of slums. It leads to environment and health issues which are acutely felt in the state’s urban areas, affecting livelihood and the quality of life, a statement said.
Giving preference to local candidates in low-paid jobs is socially, economically and environmentally desirable and any such preference would be in the interest of the general public.