December 1, 2010

Are Job Reservations In Private Sector Justifiable ?

The Common Minimum Programme of the Congress-led United Progressive Alliance (UPA) suggests that there should be job reservations for scheduled castes and scheduled tribes in the private sector. It states that, "It (the government) will immediately initiate a national dialogue with all political parties, industry and other organizations to see how best the private sector can fulfill the aspirations of scheduled caste and schedule tribe youth."

Job reservations for backward castes already exist in the government sector. But reservations in private sector have become controversial. The concept behind job quotas as stated by UPA is that, reservations in private sector will have greater opportunity or economic and social mobility for the Scheduled Castes and Scheduled Tribes (SC/ST).

A protest for reservations in jobs

Parliament passed a law in 1990, which reserved more than a quarter of all government jobs for the backward castes. The private sector has always enjoyed the freedom hiring whoever it wants. However the private sector thinks little different. Industry says, it supports the idea of a solution that will help the so-called backward castes move upward socially and economically, but implementing job quotas in the private sector is not the answer.2 The private companies say that they should have the freedom to hire based on merit, rather than any other reason. There is, still dialogue going on between the politicians, industry and trade unions, to pass on a final verdict. There has been no outcome till now, through which UPA government could draft legislation and pass it in Parliament.

In private sector large numbers of employees come in through references, then why they cannot admit reservations? Private sector must be socially responsible. The corporate sector is dominated by the people of higher class and caste. Unless reservations are made, backward communities are not going to develop. In Constitution of India, article 15(4) and 16(4) it clearly states that any community which has been inadequately represented in education and employment and who are socially and educationally backward those communities shall be provided with the representation in education and employment. Because of the reservations millions of dalits and other backward castes are able to progress in every field and now they are also able to organize politically and play a decisive role in the Indian politics.

According to industry reports, 55 % of the workforce in Hindustan Lever and 24 % in Bajaj Auto, is from scheduled castes, scheduled tribes (SC/ST) and other backward castes (OBC). Other private sector companies should follow the same, in recruiting more SC/ST/OBC and CII should encourage such a process. Reservations in private companies will only act as an participatory side into the development. If there were more participation there could be more economic growth and more development. However, corporate houses could offer to train those belonging to the reserved classes, to provide hands-on practical training, which would make them more employable. Majority of those who oppose reservations say, their representation at high and mid management levels is unfair & should be only in lower level management. Isn’t it discrimination? Presently, there is no reservation in private economy in India, unlike the Affirmative Action policy practiced in the US. Despite that, the performance of the Indian private sector in the face of global competition has been dismal.

Mayawati, CM of Uttar Pradesh

Recently last year, Uttar Pradesh Chief Minister Mayawati has introduced voluntary reservation in the private sector. August 2009, in a state cabinet meeting, decision was taken that 10% would be reserved for SC, 10% for Other Backward Caste and Backward Religious minorities and rest 10% to economically weaker section of the upper castes. UP has become the first state in the country to implement reservation in the private sector. With a noble initiative like this, a state with one of the highest number of backward class should definitely inspire other states to follow on the path to contribute in development of our country.
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