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MANAGEMENT CASE THE UNPAID INTERNSHIP DEBATE It is estimated that around 300 000 unpaid internships existed in Canada in 2014, more than a third more
MANAGEMENT CASE THE UNPAID INTERNSHIP DEBATE It is estimated that around 300 000 unpaid internships existed in Canada in 2014, more than a third more than in Great Britain, which has a population of almost double that of Canada and passed legislation to ban the practice.87 Moreover, most unpaid internships are found in large federally regulated, protable telecommunication businesses like Rogers and Bell. Should unpaid internships be allowed in Canada? Do they help young people gain real-world experience or are they unfair labour practices that exploit young people? The Canadian Intern Association has raised concern about the practice of allowing young people, often fresh out of post-secondary education, to work without pay or benets across Canada. In a survey of unpaid interns, the authors were shocked to learn that neither federal nor provincial governments track the data on the number and location of unpaid internships and there is little if any legislation governing the practice. They found that many would not speak up about poor working conditions at their unpaid placements in fear of being blacklisted by the potential future employer. \"When you ask a lot of these companies, like Bellwhich has a massive internship program they make it sound like they're doing people a favour, that they're generously providing work and experience,\" says the author, \"But it's really nothing more than a way to save money; they're obviously not doing it out of generosity?\" If companies need workers, they should be paid according to the legislation governing labour relations. Anything else, so the argument goes, is slave labour. In the face of growing controversy, many companies are abandoning the practice. But some defend the idea of unpaid internships, calling the practice relief from the \"scarring\" of long-term unemployment. The Bank of Canada governor suggested that young people should accept no wages for working if it means getting out of their parents' basements after graduatingthat they should grab the chance to beef up their resumes.89 The practice certainly helps companies with their hiring needs, because it is a cost~effective way of getting talented workers. At General Electric Canada in Toronto, for example, about 40 percent of entry-level employees hired start out as interns. By the end of the internship, the company knows who they want to offer paid employment to and who they don't. In that way, it is like an extended job interview.90 1. Summarize the debate on the \"for\" and \"against\" sides of paid versus unpaid internships. 2. Where do you stand and why
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