The Karnataka IT Union’s call to end the exemption of the IT/ITeS sector from the Industrial Employment (Standing Orders) Act, 1946, faces resistance from industry leaders, advocating for flexibility to sustain global competitiveness.
Union’s Demand and Industry’s Response
The Karnataka IT Union (KITU) urges the state government to revoke exemptions granted to the IT/ITeS sector from the Industrial Employment (Standing Orders) Act, 1946, stressing non-compliance by employers. However, industry voices, including Binod Singh of Cross Identity and former Infosys board member V Balakrishnan, argue that archaic labour laws hinder growth and competitiveness. They advocate for flexible regulations to foster sustainable growth while protecting employees’ rights.
Stakeholder Perspectives and Proposed Solutions
Various stakeholders, including unnamed C-level executives from Bengaluru-based IT firms, emphasize adherence to global HR best practices, warranting exemption from outdated labour laws. However, some companies propose stakeholder dialogues to assess the impact of withdrawing exemptions. Vikas Sharma of Hi-Com Networks suggests gradual implementation or transition periods and the development of equitable hiring procedures to balance workers’ rights with industry growth.
