Assocham fears new government could ask for quotas in private sector

Assocham said on Tuesday the new UPA government may bring in legislation on job reservation in the private sector for SCs, STs and backward classes but the industry chamber will oppose any such move.

“Since the issue of affirmative action was kept on margins . The issue would resurface as India Inc is anticipating that Dr Manmohan Singh, who would become the Prime Minister(for the second term), might repeat the call for reservation in the private sector,” the chamber said in a statement here.

Assocham President Sajjan Jindal said industry would oppose legislation for reservation in the private sector. But it would keep on employing people belonging to “downtrodden sections of society”.

HR professionals in manufacturing, hospitality, engineering, automobiles and other labour-intensive industries such as textiles, and gems and jewellery have started keeping records of SCs/STs and “other backward communities” employed, it said.

The chamber claimed that the private sector “accommodates poorer sections of society more than what is absorbed by the government and its public sector undertakings”. It said in a competitive economy, productivity has to be maintained and that cannot be possible “if reservation is imposed on it”.