Andhra Pradesh on a historic move became the first state in India to reserve jobs for locals in all private industries. On Monday Andhra Pradesh Assembly passed an Act which reserves 75 percent jobs in job-producing industries.
Andhra Pradesh Assembly passes new LAW
The Andhra Pradesh Assembly has passed a bill (Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019) that reserves 75 percent jobs in local factories, Joint ventures, and industries in the state, including those taken up under public-private partnership model
According to this new law, if a company fails to find the necessary skills in locals, then it will be their responsibility to train them in association with the state government. This would result in companies stop fencing themselves with excuses for not finding skilled local laborers.
Youth in local jobs was one of the election promises of the Andhra Pradesh CM Jagan Mohan Reddy.
The Act also says that industries like petroleum, pharmaceuticals, coal, fertilizers and cement, and others are only those unpredictable industries that will be exempted from the act after the government looks into each application and takes a call.
The act is both good and bad
Companies now have to act in accordance with these allocations within three years time. And will have to provide quarterly reports about local appointments to a nodal agency.
“The act is both good and bad. Good because it gives an indication of the government’s policy to promote local hiring in the state. But the government has to ramp up its skill development centers in the state to train locals to be ready to be hired in manufacturing and IT companies,” said Vijay Naidu Galla, president, and CEO of Tirupati-based Industrial group.
Other states like Madhya Pradesh was the latest to do that, under Kamal Nath government, as promised earlier, had announced to bring in a law to reserve 70 percent of jobs to locals in companies and other financial aids from the government.
