The Hindu : Andhra Pradesh News : Divergent views expressed on quota in private sector

Online edition of India's National Newspaper
Wednesday, Jan 12, 2005

Andhra Pradesh

Andhra Pradesh

Divergent views expressed on quota in private sector

By Our Special Correspondent

HYDERABAD, JAN. 11. Speakers at a seminar on "Reservations for employment in private sector" organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) and the Indian Institute of Public Administration, regional branch, Andhra Pradesh, here on Tuesday expressed divergent opinions.

The FAPCCI president, O P Goenka, said that reservations would dilute the quality of human resources, reduce flexibility and competitiveness in the private sector in the context of the new economy. He said that reservations would have a far-reaching impact on industry and might completely destroy meritocracy in the private sector.

Quota opposed

He said that FAPCCI had sent a questionnaire to 125 industrial units and 75 of them had replied. About 85 per cent rejected reservations in the private sector and felt that it would affect competitiveness, while 90 per cent felt that there should be no reservation in promotion. About 80 per cent felt that job reservations should be for people living below the poverty line.

Opposing the policy of reservations in the private sector, Gautam Pingle from the Administrative Staff College of India said that social responsibility was not the job of a businessman. "His responsibility is to his shareholders, customers and employees."

In his paper presented at the seminar, he said that the demand for quotas in the private sector emanated from a desire by politicians to cater to their voter base dependent on the aspiring protected groups.

Case for quota

Namdev, former president, Osmania Graduates Association, said that there was a case for moving the weaker sections beyond Government jobs and making them partners in the market economy. He said the industry associations and Government should put their heads and hearts together in the exercise and lead the nation forward.

M.Gopalakrishna, Chairman, AP regional branch, Indian Institute of Public Administration, referred to the downward trend in jobs in both public and private sectors and stressed the need to reconcile the rights of the employers, employees, customers and the State.

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