Providing young people with an internship that pays effectively $AUD 4 per hour (this week’s Australian federal budget) has been, understandably, criticised in the press and social media as exploitation. Most of the commentary focuses on the relative amounts of the payments and on arguments over the contribution to the person of an existing welfare payment. These concerns skate over some deeper problems.
First, the low payment embeds the notion that young, yet-to-be-skilled people deserve less remuneration and so a lower standard of living than everyone else, or that they should be subsidised by their parents, if they live at home, as some need to do given the low pay rates.
Second, it reinforces the idea that internships are cheap labour, opening the door to exploitation.
Third and more importantly for society as a whole, is the idea that the training of staff is not the responsibility of the organisation employing people but someone else – usually not identified, or that the employee should pay for it personally. This is especially problematic where the same employer expects the employee to arrive work-ready and productive (read profitable) on day one. The concern here is that the business organisation is not really participating in society in the broad sense of making a social contribution at the community and personal level through careful development of a skilled workforce that is valued and well provided for in all respects.
Most businesses are not like this. Good businesses contribute to the common good in a variety of ways including the building of good, employable, productive people. These businesses reap a reward by creating workforces that are enthusiastic and therefore productive, committed and therefore careful, and loyal and therefore with low absenteeism and turnover costs. They are also good product ambassadors in the community and will go on to be, themselves, good employers and community participants
This policy move by the Australian Federal Government only gives oxygen to those who are not like this, the exploiters.