On the 4th of March 2021, the Automotive Component Manufacturers Association (ACMA) adjured the state government of Haryana to revoke its law that mandates organizations to recruit 75 percent of the total blue-collar workforce from the local population.
The representative body of the auto component manufacturers said that it will dent the image of the state as a hub for automobile production and
adversely impact the operations of companies.
As per the new law that was approved by the governor on March 2, 2021, all automobile manufacturers and their component manufacturers will be required to hire a majority of their workers, with a monthly salary of up to Rs 50000, from the residents of the state.
Most manufacturers will find it tough to adhere to this new law as a major portion of the blue-collar workforce is from the neighboring states.
According to Deepak Jain, President, ACMA, the Auto industry requires a skilled workforce to manufacture high-quality products, which are globally competitive. Therefore, hiring by organizations is conducted based on merit and talent instead of the domicile of the candidates.
“The reason for the industry to employ candidates from outside the state is due to the shortage of adequately skilled and locally available manpower,” he added.