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LATEST NEWS UPDATES | Posco questions Naveen’s 90 pc job promise to locals by Debabrata Mohanty

Posco questions Naveen’s 90 pc job promise to locals by Debabrata Mohanty

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published Published on Aug 13, 2010   modified Modified on Aug 13, 2010

Posco, whose mega steel project in Orissa’s Jagatsinghpur district hangs in balance after Ministry of Environment and Forests issued a stop-work order last week, has now questioned the Naveen Patnaik government’s plan to reserve 90 per cent jobs in the unskilled and semi-skilled category for “local people” for all upcoming industrial projects.

A High Level Clearance Authority of the state government chaired by Chief Minister Naveen Patnaik recently cleared a proposal to make it mandatory for the private sector, setting up units here to reserve for locals 90 per cent jobs in the unskilled and semi-skilled category, up to 60 per cent in skilled category and 30 per cent for the supervisory and managerial cadre, while giving them the option to fill up the post of senior executives from the open market.

For the posts of senior executives, however, the companies can recruit from open market. Industry department officials said ‘locals’ would mean those displaced by a project, followed by people domiciled in Orissa.

Companies signing MoUs will be asked to submit employment status report in a prescribed format to the district collectors, with a copy to the revenue divisional commissioner and departments concerned every month.

Government sources said Posco, in a letter to the government, has questioned the constitutional validity saying reservation of jobs for certain category of people on geographical basis does not conform to the constitutional provisions which safeguard the right of citizens to work anywhere in the country. Though the company did not refuse to toe the government guideline, it has sought further clarification.

The company has said that the same clause can be incorporated in the new MoU if the government gives it in writing. The MoU, which was signed on June 22, 2005 expired on June 21 this year, after a 5 year period.

Industry department secretary Manoj Ahuja said the new policy is mandatory for all companies.

Officials said the latest move is to counter the growing feeling that a large number of non-Oriyas are taking up jobs in the new projects leaving the locals behind.


The Indian Express, 13 August, 2010, http://www.indianexpress.com/news/Posco-questions-Naveen-s-90-pc-job-promise-to-locals/659658


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