BLACK sub-contractors eking out a living off business thrown to them by large corporations and international firms could soon find themselves in the unemployment line.

In the first leg of public hearings on the proposed Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill, speakers were unanimous before the portfolio committee on labour that instead of creating more jobs, the fierce restrictions on employers may have a disastrous effect on job development and security.

Eskom legal team manager Nerina Otto said amendments to the bills, in their current draft form, had raised concerns within the parastatal. This was because it opened the door for the minister to regulate and even prohibit employers' remuneration packages and set a six-month cap on the employment of temporary staff.

"What Eskom is concerned about is that we are in a construction environment, where we are currently busy with our new build on Medupi and Kusile (power stations)," Otto said.

She said for this the state-owned utility relied on contractors who in turn hired sub- contractors to complete the work. "This is where we are able to build the economy because this is where our element of black economic empowerment (BEE) comes in, skills development and localisation."

Federated Hospitality Association of Southern Africa representative Dianne Robinson also told the portfolio committee that the draft bills were too restrictive.

Robinson said if an employer was either forced to hire a part-time employee on a more permanent basis with benefits after six months, then this may merely "tie employers' hands to manage their costs".