Interns and the Hidden Cost of Free Labour

Monday 10 January 2011 @ 9.51 a.m. | Industrial Law

Unpaid internships used to offer a legitimate way for students to gain academic credit in lieu of a pay cheque.

But increasingly, as students, graduates and even middle-aged career-changers confront employer expectations that they will work for free to demonstrate their enthusiasm and commitment, concerns are mounting about the exploitation of internships and the use of free labour in for profit companies.

Unpaid internships have traditionally been sold on what the intern will get out of the experience, intangibles such as industry contacts, new skills, hands-on experience and the prospect of being identified as an up-and-coming talent.

But plenty of people think work-for-free arrangements offer employers the better deal. Presented with ranks of keen, newly minted graduates willing to volunteer their time to secure a toehold on the career ladder, companies can cherry-pick the best and brightest, and without so much as having to dip their hands in their pockets.

Do you think that the rise of unpaid internships are a consequence of the GFC? Or are we talking about something more sinister like a loss of jobs because they are being filled for free by unpaid interns?