ACMA urges Haryana to reconsider mandate for 75% reservation for local employment

The Automotive Component Manufacturers Association of India (ACMA), the apex body representing India’s auto component manufacturing industry, has called upon the Haryana State government to reconsider reservation of employment for locals in private enterprises.

The ‘Haryana State Employment of Local Candidates Bill’ that mandates 75 percent reservation of factory and other blue-collar jobs in the private sector for locals has been approved by the State Governor on March 2, 2021 to become a law.

Stressing on the need for reconsidering such a provision, Deepak Jain, President ACMA said, “ The Indian auto and auto component industry is a global one – our production not only caters to the domestic demand, but also to international markets. The Indian component industry today exports more that 25 percent of its production, with the US and Europe being our leading markets. Our industry requires skilled workforce to produce high quality products that are globally competitive. Hiring in our sector is done on the basis of merit and talent rather than the domicile of the candidates. The reason for the industry to employ candidates from outside the state is due to the shortage of adequately skilled and locally available manpower”.

Ease of doing business to be impacted

“Such a move would not only adversely impact the ‘ease of doing business’ in the state, but also be detrimental to Haryana’s image of an industry friendly destination. The automotive industry with investments of over Rs. 40,000 crore, accounts for more than 25% of the State’s GDP and creates employment exceeding 10 lakh (or a million people). The industry is keen that the state remains attractive for fresh investments, as in last couple of years, automotive investments have been largely destined to other states,” added Jain.