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What will it take for affirmative action, Govt asks India Inc

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  • Ahead of its November 15 meeting with the private sector on introducing affirmative action (AA) in industry, the Government has listed nine points for their feedback.

    Queries range from whether the scheme should contain “objective standards of enforcement like numerical targets or quotas” to whether there is need to objectively define “creamy layer” rather than leaving it to “subjective interpretation” of individual companies.

    In a note sent out to industry associations last week, the Government wants to know whether they favour a penalty-based scheme for non-compliance of the AA code or could the same objective of broadbasing employee base through AA be achieved through an incentive-based scheme.

    Asking if there’s need for a sensitization programme on AA, the Government says it is open to the idea of providing fiscal incentives in the form of tax breaks, even giving preferential treatment in award of contracts to comply with an AA code in industry.

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    While the meet with the private sector is going to touch upon a minimum employee threshold criteria for introducing AA, the Government is keen on monitoring the industry’s performance on this front by asking them whether they are open to the idea of providing a caste profile in their annual report as well as the growth shown over the years.

    In fact, in the missive to the industry, the Government says that the industry “may” consider providing detailed information of their employee profile (ST/SC/General etc) right from floor level, lower & middle level to top managerial level. Here the government has asked industry to treat January 1, 2007 as the cut off date while this information could be provided by March 31, 2007.

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