Haryana industry bodies welcome court stay on 75% reservation law

Amid apprehensions over the law’s implementation, which industry bodies said would severely impact manufacturing and IT sectors, deter investment, and may force companies to relocate from the state in the long run, several industry associations from Gurgaon, Faridabad and Rewari had approached the court for relief.

Manmohan Gaind, general secretary, Manesar Industries Welfare Association (MIWA), hailed the HC stay as a “great move”, adding that the law, if implemented, would adversely impact small and micro-scale enterprises and result in an exodus of industries from Gurgaon. “Several industry associations had filed a petition challenging the law. The government is trying to bring in reservations in the private sector through this, which infringes on our rights which are protected in the Constitution of India. It infringes on the constitutional right of freedom to migrate for work,” said Gaind.

He said the skill set required for industries was not readily available: “The government should work on providing basic training to the youth so people are employable, rather than forcing these laws for vote-bank politics. If there is a cascading effect and other states bring in such laws, what will happen to the Union of India? On one hand, governments talk of ‘one nation one market’ and on the other hand, they are trying to destabilise the private sector through such policies.”

President of the Gurgaon Industrial Association (GIA), J N Mangla, said they hoped the law would eventually be withdrawn. “After consultations with industries in the state, we had decided to challenge the validity of the law in court since it is unconstitutional, and its implementation violates our fundamental rights. We were the first to file the petition. The court has given some relief for the time being and we hope the law is withdrawn eventually. There should be no imposition and people should be allowed to work in any state. We are of the view that there should be no reservation in jobs in the private sector,” he said.

According to the Haryana government, all industries have to register on a job portal of the labour department in the next three months before hiring fresh candidates. The Act required that employers have to submit quarterly reports on the portal, with details of local candidates employed to ensure compliance.

B R Bhatia, president, Faridabad Industries Association, said, “Since the law was announced, we decided to challenge it as it was not acceptable to us. Many employers and industries in the state had stopped hiring for some time since the law was notified. It is not possible to get skilled manpower only from one state and the law would severely impact productivity.”

Gurgaon Udyog Association president Parveen Yadav said the HC order had come as a big relief, especially for employers: “Several companies had put their plans regarding recruitment and expansion on hold due to the uncertainty and were waiting for court proceedings. A lot of resources and manpower was being devoted to understanding new regulations and compliance. The order will give some confidence to industries.”

Industry leaders said they believe the government will go to the Supreme Court now. “We hope the law is scrapped. It goes against the spirit of federalism in India. If all the states bring in such policies, no one would be able to migrate for work,” said Pappujit Singh Sarna, Chairman, IMT Industries Association Faridabad.