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The state assembly passed the Haryana State Employment of Local Candidates Bill that makes it mandatory for factories and companies hiring for blue-collar jobs to reserve 75% of jobs for the locals.
80% of auto component manufacturers of the entire country are in Haryana and the Guru Gram-Manesar-Bawal region is considered to be the hub of auto component manufacturers in India.
After the bill was passed, Deepak Jain, President of Automotive Component Manufacturer Association of India (ACMA) requested the government to rethink on its decision as to the Indian industry not only develops automotive components for the Indian market but also develops the finest quality components and exports them to a number of countries across the globe.
Deepak Jain further mentioned that making such mandatory reservations will impact the level of skills and talent that the industry requires and without the finest labour force the quality of production will also decline, which will further affect the exports and the economy of the industry.
Currently, ACMA which is also the apex body representing the interest of the Indian auto component industry has more than 850 manufacturers as their members which consists of almost 90% of the manufacturers across the country. The overall turnover of the industry is approximately $53 billion, which come up to almost 2.3% of the Indian GDP.
Apart from Haryana, many such states have tried implementing the reservation bills, but most of them couldn’t be implemented.
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