" Low Pay " Trials !

Employing young people as "Interns " is a common practice in many other countries and it is being suggested for trial here as a means of reducing youth unemployment.  Unfortunately, this terminology means different things to different people and we need hard and fast rules to ensure it doesn't allow unscrupulous employers to churn through an endless stream of low paid workers who never succeed in finding a permanent job.

The Australian "Trial Hire Bill "before the parliament is a tentative plan to offer twelve week internships at a pay rate of two hundred dollars a fortnight.   This falls below the minimum pay scales already in place but it is said to deliver an important benefit.   The young worker gains work experience in the industry that offers this facility, and he or she has a good chance of being offered a permanent job if they show talent.

The suggested hours are being challenged by the Australian Council of Social Services, who suggest that Interns work a thirty hour week instead of the fifty hours in the proposal.  This would bring their rate of pay more into alignment with the minimum pay structure in place.   The bill has passed the lower house and is awaiting consideration by the Senate.

There seems a doubt that Interns would be covered by workers compensation and insurance. In some overseas countries Internships are entirely voluntary.  No pay is involved and the entire concept is based on getting work experience.  These are often highly sought after opportunities and when they occur in prestige companies or in government departments influential parents bring pressure to bear to place their sons or daughters to the fore front.

No doubt this bill will stir the usual political controversy in the Senate.  It is likely that Labor and the Greens will seek amendments and the ACOSS input will be assessed.  It seems certain that Internships in other countries will form part of these discussions, and the outcomes have been mixed.

In America Internships within the government are highly prized and sought after - and subjected to political influence.  Internships are often allocated as a form of reward that a politician can bestow as a favour to a constituent.  A similar scheme in Ireland was terminated when difficulties emerged and in Britain there is controversy over whether the idea is delivering value for money.

There seems little doubt that some unscrupulous employers will see Internships as a way of hiring cheap labour.   There is a danger that it could be used to replace permanent employees with an endless stream of temporary workers at very low rates of pay - none of whom would have any hope of attracting a permanent position.

It certainly has value when the employers intention is to genuinely seek talented entrants to augment their work force and the employees are not merely attending to escape pressure on the dole queue. The difficulty will be in framing the terms that apply to clamp down on the inevitable rorting and deliver Internships as a valuable tool in producing job opportunities.

Sadly, many government schemes fail such practical applications !