ACMA Urges Haryana's Khattar Govt to Reconsider Employment Quota Move for Auto Sector

India's auto component manufacturing industry has urged the Haryana government to reconsider its decision mandating reservation of employment for locals in private enterprises.

Earlier this month, Haryana Assembly had passed the 'Haryana State Employment of Local Candidates Bill' that mandates 75 per cent reservation of factory and other blue-collar jobs in the private sector for locals.

Automotive Component Manufacturers Association of India (ACMA) President Deepak Jain 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 25 per cent of its production, with 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 talent and skills needed by the industry rather than on domicile of the candidates."

Stressing on the need for reconsidering such a provision, Jain said: "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."

At present, ACMA represents over 850 manufacturers, who contribute more than 90 per cent of the auto component industry's turnover in the organised sector.