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Check it out- we’re in The Times

We have been granted access to the article despite not being subscribers, so enjoy…

Young people are being used as free labour

The Times, 22/09/2010

Young graduates desperate for a job are increasingly being exploited by cost-cutting employers who flout minimum wage legislation by using them as unpaid interns in roles formerly performed by salaried employees, it is claimed today.

 An estimated 128,000 people have worked as interns for British businesses this summer for less than the minimum wage or no wage at all. Some employers do not pay travel expenses.

In a letter published today in The Times, campaigners for young people claim that unpaid internships are illegal and “exploit those who do them and exclude those who can’t afford to do them”. Its signatories, who include student, graduate and union representatives, are demanding government action to “end this hidden economy and enforce existing minimum wage legislation”.

 Some employers were effectively using slave labour, said Alex Try, who runs the Interns Anonymous website. “If you’re running a business in straitened economic times, you’re not going to budget to pay £15,000 for a junior administrator if you can get an extra pair of hands — an intern — to perform the same tasks for nothing.”

The Chartered Institute of Personnel and Development estimates that 28 per cent of internships offered this summer paid below the minimum wage and 18 per cent were unpaid.

 In a recent report, the Institute for Public Policy Research (IPPR) defined an internship as lasting for at least three months, involving an agreement to work set hours, often full-time, performing specified pieces of work that would otherwise be done by a paid member of staff.

 The IPPR argued that interns performing such roles in the private sector should be classified as workers under the Minimum Wage Act 1998 and that their employers should be paying them at least the minimum wage.

Pam Loch, of specialist employment lawyers, Loch Associates, warned that “in the current recession, with businesses trying to reduce costs, some are substituting internships for paid jobs”.

 “It’s a grey area. A lot of interns are not going to challenge the system because they’re pleased to gain the experience, but employers need to be aware that HMRC has compliance officers who can carry out an inspection at any time.

 “Genuine work experience is one thing, but employers who treat interns as though they were workers or employees, doing a job a paid employee would normally do, could be challenged at an employment tribunal.”

 Internships are growing in popularity across many sectors of industry, but remain particularly common in the worlds of politics, the media, PR, fashion, design and the arts.

Full-time, unpaid internships have been advertised this summer by Selfridges, Urban Outfitters, the retail fashion chain, and publishing firms producing magazines for Tesco, Sainsbury’s, Morrisons, Superdrug and Weight Watchers.

Some last three months but the Urban Outfitters’ internship, involving the performance of “key” specific duties in the planning and allocation department of its London head office, lasts nine.

One London PR company, “a cutting edge media consultancy firm”, is offering a three-day-a-week internship for an “intelligent and hard-working graduate with bags of initiative” who is prepared to work unpaid for “at least 11 months”.

 Tanya de Grunwald, who runs the Graduate Fog website for jobseekers, has been running a name-and-shame campaign this summer to highlight major companies that are advertising unpaid internships.

 She said: “Some of these companies are well-known brands who usually protect their image really fiercely. I think they should be ashamed of using young, unpaid workers like this, especially given the dire headlines about youth unemployment at the moment.”

Ed Howker, co-author with Shiv Malik of Jilted Generation: How Britain Has Bankrupted Its Youth, said that the private sector’s increasing use of extended, unpaid internships was unacceptable.

 “Getting work experience is fine but internship is different. In some of the most competitive industries you can labour for months without any pay as an intern. It sends a horrible message to new workers that what they do is useless.

“And it’s not the only problem young people face. With an ailing employment market, expensive rents and huge student and personal debts, young people are ending up locked out of normal adulthood.”

Continue reading ‘Check it out- we’re in The Times’

A little light slavery never did anyone any harm

Charmingly entitled ‘A little slavery does us all good’, Julia Margo’s article in the Sunday Times, 15th August, sets out the reasons why she thinks we need to increase the number of unpaid internships on offer, rather than get companies to pay their interns. She also entertains us by telling us about the time when she, an erstwhile intern, rocked up to work in a law firm wearing a crop top. Reading the article, I found myself overwhelmed by the quality of prose and incisive analysis on offer but I have to admit the following section is my out and out favourite:

‘While I count myself lucky to have been able to benefit from the inspiring work experience I had, policy wonks are immersed in debate about whether unpaid interns are in fact being exploited. To explore that claim, I spoke to one of the 450 unpaid interns who work in parliament: she said she had gained a lot and didn’t feel exploited at all.’

Oh wow, you spoke to one intern? And she didn’t feel exploited? Thank God for that, now we can be sure that no other interns anywhere in the world feel or are exploited. Obviously I don’t want to be associated with the ‘policy wonks’ (by the way Julia is Acting Director of the think-tank Demos, which is there to do what exactly? Policy wonk.) – but I would like to draw Ms Margo’s attention to the views of the more-than-one-intern who have emailed us and taken our surveys in the past two years. The following are a selection of quotes from our inexperienced, crop top wearing and, let’s be honest, moronic interns:

‘I feel the internship system in the UK is hardly human anymore’

‘I am now cold towards politics as a career’

‘it should be made illegal’

‘the company I worked for were making people redundant and stuffing interns into their positions’

‘I took the internship on the understanding that I would get a job but three months in it is clear that neither me nor the three interns I work with are going to be employed’

‘I learnt new skills but 5 months without pay and 2 months unemployed have made life pretty difficult’

‘this was a sad waste of time’

‘this is the worst thing I have done in my life! I work a 60 hour week, I am petrified of my boss who calls me lazy but I love parliament and I don’t want to quit in case it makes me look bad’

‘it was an utter waste of time’

‘I am sick of this shit’

OK you get the picture.

This isn’t to say that some internships don’t provide skills and don’t allow people to settle into a good work ethic but it saddens me to see unpaid work supported so whole heartedly by someone who should be able to see that economically, socially and even- dare I say it- morally, asking or expecting or allowing people to work for free is wrong.

Turning down the violin soundtrack and ignoring the yelps of bitter, resentful interns- from a practical standpoint work that doesn’t pay can only ever be a stopgap, it solves a problem in the short term, a bit like getting the Dutch kid who used his hand to stem a leak in a dyke to stand there forever instead of getting help. The kid’s arm would get tired and eventually Holland would be in a worse situation.

Let’s look at one of the main problems that internships are supposed to solve:

How do we solve youth unemployment in this country?

Encourage growth, more jobs.

I know I know it’s not as simple as that (maybe it is) but internships DO NOT get people jobs- they, in the words of a particularly witty intern, ‘prove that you’re not in prison’. Jobs get people jobs. Our survey of 249 interns found that 82% of them did not get a job in the organization they interned with. Frankly, we all know what the problem is- there are not enough jobs- we need to look at this issue straight in the eye, like Crocodile Dundee would look at a raging buffalo. Graduates are not getting as many jobs as they should because there are not enough jobs, NOT because they are particularly stupid, under-experienced or crop-top wearing.

You thought I was going to shut up now but it turns out I’m not. Here is another great bit from Julia’s article:

‘The best way to ruin opportunities for thousands of graduates would be to insist that internships are paid. Employers would simply offer fewer placements if they had to pay — they already invest a fair amount of staff time in them. Worse, paying interns would pollute the whole process and ultimately lead to internships being conflated with entry-level jobs, thus excluding exactly the kind of fresh graduates who benefit most from the opportunities. Who would pay a useless graduate when you can hire a recession-hit 25-year-old? I once worked in an organisation that paid its interns. As a result, we recruited through a formal process and took only those with prior experience.

 Re-e-wind:

Paying interns would pollute the whole process and ultimately lead to internships being conflated with entry level jobs’. But wait! Hold up! The trouble is, internships are already being conflated with entry-level jobs. So now they’re entry-level jobs without pay. I don’t normally approve of using one person’s experience as evidence of a general trend but what the hell, if Julia does it, so can I: ‘the company I worked for were making people redundant and stuffing interns into their positions’- said one of the interns who took our survey. 

And now my to address my particular bugbear, slagging off shitty graduates who can’t even make a bloody coffee for god’s sake:

Who would pay a useless graduate when you can hire a recession-hit 25-year-old?

Perhaps a company which, as well as not expecting a 25 year old with commensurate experience to take an entry-level job, would also like to invest in its employees, build up their skills base and create a competent, non-resentful workforce. I guess this is about principles and maybe a little bit about old-school Cadbury’s style corporate paternalism. 

Graduates may be depressingly eager to submit to whatever crap the government and the winds of fate throw at them (top up fees, more top up fees, internships, house prices higher than the moon) but they are not useless. Funnily enough, several paid interns we have talked to report a far better learning experience and a far more positive outcome for both them and the employer. Employers have also noticed an improvement in the quality of their intern’s work when they pay them: this is partly for obvious reasons (money grabbing graduates are only happy, effective workers when they can buy booze and drugs) and partly because employers care about money, so if they are spending it, they will make sure they teach the intern what they need to know, give the intern clear tasks or projects and help the intern throughout this process.

I once worked in an organisation that paid its interns. As a result, we recruited through a formal process and took only those with prior experience.

The experience conundrum is a difficult one but to pretend that it doesn’t apply to internships as well as jobs is madness. Let me take a look at w4mp, artsjobs, charity jobs and see if I can find an internship that demands experience. Oh look! I found two that specifically demand experience, here and here. The second organisation would like ‘someone with experience and/or a good understanding of the legal business, preferably with a law degree, interested in improving their understanding about the global legal community and to develop relationships in the industry’. And you can safely bet money that the huge demand for internships mean that despite a lack of explicit demand for experience, you will need experience to stick out from the crowd, unless of course your boyfriend’s mate works for a national newspaper.

‘The 2010 “non-graduate talent pool” (made up of 50% of the youth population) is, of course, extremely unlikely to find any work experience at all. But the government offers basic skills training to help them find rubbish jobs stacking boxes, so that’s okay.’

I am not one to stick up for government policy so why change the habit of a lifetime: patently two wrongs do not make a right. Unemployed school-leavers are facing the same conditions as the rest of us- this doesn’t mean I support the promotion of unpaid internships for graduates. Once again I am going to be incredibly demanding- jobs for all of us! All of us! We all want jobs and we want them now!

Now, I don’t pretend to be Miss Popularity but at least I know more people than Ms Margo who has never met anyone who cannot afford to work for nothing:

‘I have yet to meet a graduate who genuinely cannot afford to work for nothing: sleep on a friend’s floor and work in a bar in the evening, for goodness’ sake.’

In 5 seconds I can think of at least 5 people I know very well who wouldn’t have been able to afford an internship for more than a month, and I am not sure whether my parents (in my case, London based) would have been up for 5 of my friends sleeping on the sofa, for goodness’ sake! (By the way if you put a quaint expression of exasperation at the end of the sentence, people are more likely to suck it up and believe what you say) Also can I just ask why pubs should constantly be supporting graduates through their career search?

Thousands of graduates do this without complaint. As for non-graduates and those from poorer families, these are excluded not by cost but by the snobbery of employers.

Finally something I semi-agree with. But I can assure you that people are excluded from internships as a result of their cost and not living in London, as well as by the  snobbery of employers. The existence of one excluding factor does not preclude the existence of the other. Mind blowing, I know.

‘While debate rages on over whether unpaid interns are exploited or lucky, there is no question as to whether employers benefit: our economy is now secretly running on intern power. What we actually need to do is to increase the number of internships being offered, rather than make companies pay.’

If the economy is indeed secretly running on intern power (well it’s not such a secret in the case of Demos- the think-tank which Julia is currently directing) then what does that say about our society? That we value our young people so poorly we demand that they work for free, something that is anathema to most sane people; that whilst praying for the economy to grow, we are actively stunting it by restricting ‘thousands’ to a pittance that they will then spend on…Sainsbury’s basics beans? Just what is the point of increasing the number of internships when all that would lead to is graduates having to step up the number of internships they did to stand out? By increasing the expectation of unpaid work, all you do is discourage paid work, which is- let’s not forget- one of the pillars of a successful economy.

What do you think? Have I gone crazy or is Julia Margo crazy? (Judge for yourself- when we have sorted out rights and posted the article- Sunday Times needs a subscription and we don’t want to make them mad).

Seven big brands (and Dragon’s Den star James Caan) face unpaid intern inquiry

A couple of fantastic posts over at the Graduate Fog website showing huge companies offering unpaid internships. If Tesco can’t afford to pay an intern what hope is there!

Your Freedom

The Government has a new website called ‘Your Freedom’. You submit ideas for laws that would make the country a better place.

Someone with a lot of sense has submitted the suggestion that interns should be paid the minimum wage.

Register here, rate the idea and comment.

Why Interns Need a Fair Wage

We’ve been away on holiday for a week, so almost forgot to mention the fantastic report written by IPPR and our friends at Internocracy last week

Brilliant media coverage. Highlights here, here, here and here

It even included Uni Minister David Willetts saying:

…the exploitation of interns is unacceptable and employment legislation must not be breached

ALL LABOUR LEADERSHIP CONTENDERS BACK FAIRER INTERNSHIPS

Intern Aware has announced that all five candidates for the leadership of the Labour Party have signed up to back a fair deal for interns. The candidates have pledged to campaign to end the situation in which many interns are denied rights as short-term workers, including being paid the minimum wage. 

Fantastic work by Intern Aware to get all the candidates thinking about this issue. But has Guido Fawkes caught out Ed Balls breaking the pledge already? 

Interned with an engineering or technology firm?

Please get in touch. We would love to hear from you.

Save BBC Blast

Journalist Laura Snapes has written a great article on her blog about why BBC Blast, a paid work experience scheme, should be saved from the corporations cost-cutting axe.

It gives opportunities to young people right across the country to make their first steps in journalism… and no doubt played a founding role in landing Laura her dream job at NME.

This is what she has to say about her experience:

In May 2005 I was appointed BBC Cornwall’s Blast Reporter, which entailed spending the summer running my own section of the BBC Cornwall website. I interviewed bands, jewellery designers and the inventor of the first biodegradable surfboard, took photos of the Eden Sessions and played at being a real journalist for the summer. The same scheme went on in the majority of the BBC’s local newsrooms. With our sections being primarily arts-based and aimed at fellow teenagers, our duty as reporters was to file at least one article and diary entry per week in exchange for rigorous BBC training in internet content management systems, professional recording equipment, and safety procedures.

And this on the real impact of the BBC decision:

… the people who will miss Blast – in particular its work experience placements and free event and workshop tours – are a group chronically underserved by commercial media, which is in complete antithesis to the BBC’s justification for proposing various closures on account of intruding on the competition. That group includes young people in geographically remote areas, away from the London-centric media world – regions like Cornwall, where there are very few other opportunities for teenagers to get experience in the limited local press that exists here. It includes kids whose parents/aunties/godfathers aren’t industry highflyers, able to wangle their progeny work experience placements on account of the family name; kids who wouldn’t make it to Oxbridge – still renowned for giving applicants a leg-up into the Beeb – but who nonetheless have incredible skills to offer. Blast is open to kids from any social background, making them feel comfortable in a very middle class industry, and the application process is the same as any fair, equal opportunities job application – proving that you’re worthy of the job because of your enthusiasm and achievements.

Why would the BBC be cutting BLAST at a time when job opportunities for young people are so limited and the current internship culture so often benefits those with money or geographically based in London? Also why did 6 Music get so much attention and this didn’t! Read the full article here. And if you tweet (we really should more.. then join the twitter campaign here).

Labour leadership candidates pledge to support interns

The campaign group Intern Aware have taken advantage of the Labour
leadership battle to get the candidates to commit to enforcing
national minimum wage for interns. They are asking all contenders to
sign this pledge:

If I am elected leader of the Labour Party I will campaign for Labour’s Minimum Wage Act to be fully enforced so that employers must pay their interns what they are due.

So far a rather dapper looking Andy Burnham has signed it, and the Milibands have agreed to as well. No news on Ed Balls… and Diane Abbott would be a suprise because we have heard the number of unpaid interns she has could reach double figures! One spoke to us recently to say she worked unpaid for a year and a half before being given a paid role. Real social justice there Diane, you hypocrite.

On the campaign, I think it’s a great idea to use this attempted renewal of the Labour Party to get interns on the agenda. With more young people graduating in a tough economic climate, it’s time politicians enforced the national minimum wage laws they themselves brought in. Intern Aware need to be congratulated for taking this to the top.

£2.50 an hour for working as an intern?… you must be joking!

My reaction to the recent proposals saying interns should be paid a ‘training wage’ of 2.50 an hour was shock and disbelief. In fact, it was to whisper “bullshit” under my breath several times. A reader has written in with their thoughts: 

This week has been a hot one for internships featured in the media. Not only have Allen&Overy released some interesting findings on the inaccessibility of internships, but the CIPD has come out with an idea for a ‘training wage’ for interns, suggesting that this will enable more employers to pay interns.

This is a rate of £2.50 an hour for anyone working as an intern – the same as anyone working as an apprentice. According to the CIPD it is a ‘good solution’, because if all businesses were urged to pay full NMW to an intern, ’30-40 per cent of opportunities would disappear’.

Well let them, I say.

If business can’t host an intern, can’t pay a (very) reasonable wage and can’t see why this isn’t wrong, the ‘opportunity’ becomes another form of exploitation. The CIPD’s proposed solution, a halfway-house between nothing at all and NMW, is insulting to graduates coming out of university having just invested the best part of £25,000 in building their skills and abilities.

The parallel with apprenticeships is also slightly deceptive. Apprentices embark on a well-laid out course of work and study, with controls over the type of work they can do, and how much time they should spend at work. If interns had these sorts of safety nets, and a prescribed course of learning on the job, the ‘training wage’ might be more appropriate as it would include a package of well-thought-out areas in which the employer would be expected to give them some training.

I also have to take issue with the way in which this ‘training wage’ is presented as some sort of solution to the horrendous lack of social mobility in internships. Take London as an example. Paying young people NMW is still around £2 per hour less than the London Living Wage. So how do we expect an intern to live off half of that, in addition to perhaps having to move to and find a flat in London, unless they are supported by well-off parents or have family already in the area.

The reality of living on NMW in a city like London is stark – much starker than the impact paying it has on an organisation. The CIPD seems not to have thought through the economic realities for the young person, whilst offering concessions to organisations left, right and centre.

Many businesses complain that they are not able to pay interns. My response to that would be to find a new business model. If a profit-making organisation is relying on unpaid workers, that is illegal. The simple message is: if you can’t afford to have interns, don’t offer an internship. Because it’s not an opportunity – it’s exploitation.

Various ways to have your say

NUMBER 1: IPSA- Parliamentary Reform

IPSA have invited the public to comment on their ‘Amendments to the MPs’ Expenses Scheme Rules’. Have a look at this document, in particular these questions:

Q2. How should MPs be able to claim for the payment of travel and lunch expense to interns who are not ‘workers’ and do not have contracts of employment?

How may MPs operate safely within the exemptions provided from paying minimum pay rates within the legislation? 

 Email your answers to: schemeconsultation(at)parliamentarystandards.org.uk by the 7th July.

NUMBER 2: Low Pay Commission

Get in touch with us via email if you would like to talk to the Low Pay Commission about your experiences as an intern paid less than the minimum wage. You would need to be free from 3.30pm to 4.30pm on Wednesday 7th July and be able to travel to Tottenham Court Road in London. 

OK there are many many other ways you can have your say but two is enough for today…

The murky Internship Alliance

You might be hearing a little more about something called the ‘Internship Alliance’ over coming weeks and months. They are a newly created pressure group of vested interests and public affairs companies who want to lead discussions with the government about the role internships play in the job market. We, and a few others, have some concerns.

They have styled themselves as being ‘friends of the intern’, but to quote an anonymous intern who alerted us to this story:

Its motivations seem dodgy to say the least. It seems more like a grand plan to make money for some of these organisations by lobbying Government under the guise of making internships better.

Our anonymous intern went on:

One of the organisations involved is Luther Pendragon who, it has been discovered, takes on unpaid interns. This is genuinely quite shocking. I have found three adverts for unpaid internships with Luther Pendragon from the past few months: here, here and here

Luther Pendron will be running a full-scale press campaign for the companies involved – and we have recently discovered that some of these companies pay a fee to Luther to be associated with the alliance.

Our anonymous Intern describes another member of the Alliance – Inspiring Interns – who we have written critically of in the past. They make a profit out of the intern industry – getting a fee for arranging an unpaid internship, and then charging the company if the intern is given a paid job! They also boast of having 10+ unpaid interns themselves. It’s a staggering business model, that uses interns like serfs.

We do not believe they have interns’ rights at heart – and I do not want them speaking for me in the national press.

Someone from Inspiring recently wrote this to try and convince companies to sign up to its scheme: 

The answer for many businesses may well be hiring an intern. Interns represent very effective, but inexpensive, labour.

We look forward to being surprised by the Interns Alliance. Anything that ends the current intern culture is undoubtedly a good thing. But we do not think the Alliance is best placed to do this.

Intern Aware is involved, who really do care about getting minimum wage for interns, but as ex-member Tanya from Graduate Fog wrote, she had to spend the Alliance meeting fighting for interns rights. That should be the uniting factors behind an intern pressure group not something to debate! 

Tanya left because she didn’t like the morals or the motivations of the companies involved, and as the anonymous intern who originally emailed us said:

I’d seriously consider how it looks for you to be associated with this Internships Alliance group, they seem like they are in it for the wrong reasons.

Beware any press coverage that comes from them over the summer. 

NB: Other groups involved, according to a comment on the Graduate Fog website include: WEXO, STEP, Give A Grad A Go, The Student Room, Wikijob, Rate My Placement, Enternships, Student Beans, AIESEC, Brave New Talent and Business In The Community.

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Interns Anonymous

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