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Corporate India will support affirmative action for SC/STs by focusing on educating and upgrading the skills of society's weaker sections, not by introducing caste-based job reservations in the private sector, as the government had promised in its Common Minimum Programme
Indian business houses and organisations have rejected the government's suggestion of extending the job reservation policy for India's Scheduled Castes and Scheduled Tribes (SC/ST's) to the private sector, but have made a commitment to the concept of affirmative action through the implementation of various social justice schemes for these sections of the population.
While corporate houses were given an assurance that the government would not resort to legislative action to impose a statutory obligation of reservation on them, the government has nevertheless, claimed this half-measure as a victory hailing it as a "historic breakthrough" in government-private sector partnership on social justice.
While appreciating the sentiments behind the government's intention of ensuring social equity, the heads of Indian industry refused to back down from their insistence on merit-based recruitment.
In fact the newly-elected president of the Confederation of Indian Industry (CII) Y C Deveshwar categorically stated that India Inc was not in favour of such quotas for SC/STs in the private sector. "Nobody (from the industry has agreed to job reservation" Deveshwar told the media. Deveshwar insisted that there would be a loss in competitiveness if the quota system was thrust upon the private sector. "Only through advancing competitiveness in the companies canmore jobs be created Therefore, we are opposed to any idea that will hamper competitiveness."
Saying that "Reservation is not an objective, creating employment is the motive," Deveshwar said that to achieve this end this end, companies should create opportunities for backward and forward linkages, implying corporate-funded training programmes for the weaker classes.
But India's social justice and empowerment minister, Meira Kumar said they had "overcome their initial opposition to stand for the first time on a common platform to recognise the fact that merit is not a natural phenomenon but shaped by social circumstance."
The ministry had written to 218 corporate houses and associations on November 18, 2004 about the possibility of reserving a percentage of jobs in the private sector for SCs and STs. After three months it has received just 21 replies and no unqualified support. Other groups have asked for tax breaks and incentives before taking up the proposal. In short, most of the business groups have attempted to kill it with studied silence.
In a related development 22, of the country's top business houses wrote to Kumar assuring the government that they would expand their activities for SC/STs like scholarships, vocational training and company-run schools.
"The need is not just to provide jobs but incubate the mergence of a robust entrepreneurial class of youth from the SC/ST. "
"The imperatives of a competitive economy require that industry place a premium on merit," the letter written by Tata Group chairman Ratan Tata, added.
Te industrial houses must create an environment where the SC/STs can become as meritorious as any other youth when they enter their economically productive years, the letter, also released as a joint stemenent observed. "We commit to expand our current activities for disadvantaged persons with regard to scholarships, company-run private schools, partnership with government schools, vocational training and other development programme. We will do this through credible voluntary groups and implement in letter and spirit a programme of affirmative action to empower persons who are socially and economically backward.'
The signatories to the letter include Anu Aga (Thermax group of companies); Rahul Bajaj (Bajaj group); Kumaramangalam Birla (Aditya Birla group); Naushad Forbes (Forbes Marshall India); Jamshyd N Godrej (Godrej and Boyce Manufacturing Company Ltd); F T Khorakiwala (Switz group); H F Khorakiwala (Wockhardt Ltd); Suresh Krishna (TVS Group); Keshub Mahindra (Mahindra and Mahindra); A C Muthiah (First Leasing Company of India); B Muthuraman (Tata Steel); Narayan Murthy (Infosys); Deepak Parekh (HDFC Bank); Azim Premji (Wipro Industries); S Ramadorai (Tata Consultancy Services); Gurpreet Singh (Continental Devices); and Gautam Thapar (Crompton Greaves). Others who signed the letter were Tarun Das and Sunil Kant Munjal, former chairpersons of the Confederation of Indian Industry (CII), A.S. Ganguly, former chairman of Hindustan Lever and Rafiq Zakaria, academician.
Denying that the industry had agreed to the concept of affirmative action after an assurance from the government that it would not insist on legislation, Kumar said there was no mention of any legislation in the National Common Minimum Programme of the United Progressive Alliance Government. "We are sticking to the common minimum programme which mandates us to begin a dialogue with the corporate groups for affirmative action." said Kumar.
Kumar evaded a direct answer on whether the UPA had abandoned the proposal to have quotas for SC/STs in jobs in the private sector. "But a commitment on affirmative action would subsequently include job reservation in the private sector.''
For more information read Reservations for Dalits as CSR?
Myths About Private Sector Reservation
Source: The Hindu, June 1, 2005
The Telegraph, June 1, 2005
Deccan Herald, June 1, 2005
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