The proposal to extend the reservation policy to the private sector, an initiative made by Prime Minister Dr Manmohan Singh, has been rebuffed by business houses and organisations.

Some of the biggest business groups have rejected the idea, saying the move could be detrimental to the unity of the country. Other groups have asked for tax breaks and incentives before taking up the proposal. In short, most of the business groups have attempted to kill it with studied silence.

The Ministry of Social Justice and Empowerment had written to 218 corporate houses and associations on 18 November 2004 about the possibility of reserving some jobs in the private sector for Scheduled Castes and Scheduled Tribes. After three months it has received just 21 replies and no unqualified support. 

Some have suggested a voluntary exercise in which jobs could be found for the underprivileged. But they want this informal quota to be capped at 10 per cent. Others are willing to consider such an arrangement at Class III and IV levels but not for managerial positions.

The major business groupings, including the Confederation of Indian Industry, either want incentives or are opposed to the idea of job quotas. They argue that job reservation in the private sector would ‘‘further divide society on caste basis. It would develop the unions based on the caste system...seriously hamper FDI as MNCs are already insisting for liberal labour laws…’’

Amit Mitra, FICCI secretary-general, wants tax breaks for those who consciously hire from disadvantaged communities. ‘‘Our suggestion is that companies which employ a certain percentage of the SCs and STs should get some preferential treatment.’’ 

ASSOCHAM favours training for SCs and STs but is opposed to outright reservation. Its letter to the ministry states that ‘‘preference has to be given’’ to the underprivileged ‘‘if all other things including merit is equal.’’

The CII, which is of the view that fixing a quota is not the manner of helping the less privileged, has told the ministry that training and skill-development should be the focus areas.