Auto industry body expresses discontent over reservation for local workers in Haryana

Mumbai: Automotive companies in the state of Haryana expressed discontent over the government’s move to reserve 75% of the factory jobs within the state for local candidates as it would disrupt the automotive supply chain at a time when demand has outstripped supply and companies are working overtime.

The Automotive Component Manufacturers Association of India (ACMA), a lobby of automotive suppliers in a statement requested the Haryana state government to reconsider its move.

“Hiring in our sector is done on the basis of talent and skills needed by the industry rather than on domicile of the candidates,” said Deepak Jain, president of ACMA.

“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 state and in attracting future investments,” he said.

The Haryana state assembly last week passed the ‘Haryana State Employment of Local Candidates Bill’ that mandates 75% reservation of factory and other blue-collar jobs in the private sector for locals.

The move comes at a time when automotive companies are working overtime to meet a sharp surge in demand during the festive period and make up for the business lost due to the coronavirus pandemic. Supply chain constraints have impacted the production for several automakers.

The Gurugram-Manesar automotive belt hosts some of the country’s largest automotive companies and their suppliers, including Maruti Suzuki which makes one in every two cars sold in the country.