Saturday, 31 of July of 2010

Tag » Exploitation

Low Pay Commission Report 2010

The full report is here…this is what it has to say on “Interns and Internships”:

4.76 Evidence from stakeholders continues to indicate that labels such as

‘volunteer’, ‘intern’ or ‘work experience’ were sometimes applied to

activities that are clearly work and for which at least the minimum wage should be paid.

In its evidence, Equity said that there was an ongoing

problem of unpaid work, particularly with walk-on roles that offer no pay.

Interns Anonymous claimed that interns were being used by employers

to cut the cost of basic administration and entry level jobs. In his

evidence, Mark Watson submitted 140 adverts for unpaid interns and

work experience that appeared to break minimum wage rules. In its oral

evidence, the National Union of Journalists (NUJ) said that many people

who were undertaking work experience were actually doing jobs that

employers relied on, particularly in television and consumer magazines.

It said that there was an over-supply of people desperate to work in the

media industry and employers have built unpaid work placements into

their business model. In its oral evidence BECTU said that some well

established companies used the terms ‘volunteer’, ‘intern’, ‘trainee’ or

‘work experience’ in the entertainment industry to encourage people to

undertake unpaid roles which included basic office work, digitising

material and writing up transcripts.

4.77 It is becoming increasingly commonplace in certain sectors, particularly

the media, entertainment industry and in politics, for employers to

demand a period of unpaid work experience as a means of getting into

the industry. The Government’s Fair Access to the Professions report

highlighted the issue of unpaid internships and how they serve to limit

career choices to those who can afford to work unpaid and those who

live near London. We received evidence from several individuals and

organisations that confirmed this finding. Interns Anonymous claimed

that it was difficult to gain employment with MPs or political parties

without intern experience in parliament. In its oral evidence the NUJ said

that it was hard to get a job in journalism without having previous work

experience but despite people undertaking internships, there was often

no prospect of a permanent job for interns. It estimated that only 30 per

cent of unpaid journalist positions resulted in permanent jobs. In his

evidence Mark Watson said that a period of unpaid work was now

regarded as an unofficial price of entry into many industries, resulting in

large numbers of young people failing to be paid the minimum wage

where it was due. The TUC said it did not believe that employers should

be able to demand a toll of unpaid work before awarding jobs as this

puts those people without parental financial support at a disadvantage.

4.78 We recognise the benefit to young people undertaking work experience

and do not want to stop individuals undertaking genuine work experience placements or discourage employers from offering good quality opportunities. Our view has always been that unpaid work experience is an area where wider dissemination of guidance and more

effective enforcement is needed, rather than any change to the rules

themselves. However, we are concerned about the increasing number

of organisations that are relying on interns, often for several months, to

perform work for no pay. The evidence we received on unpaid work

experience indicates that there is systematic abuse of interns, with a

growing number of people undertaking ‘work’ but excluded from the

minimum wage.

4.79 We have expressed our concerns about unpaid internships to BIS

throughout the year and it has responded positively. In its evidence to

us, BIS said that it recognised the concern that was expressed in the

media about the inappropriate use of internships. It said that it would

consider whether there was anything further it could do to make its

guidance on work experience clearer for employers and interns and

increase awareness of the guidance. We further encourage BIS as part

of this work to engage directly with the sectors in which lengthy unpaid

internships have become the norm. We invite BIS to present its

proposed strategy to us by the summer.

4.80 We have also raised our concerns about unpaid internships and effective

enforcement with HMRC. HMRC responded that in none of the

complaint cases it had received in 2009 concerning interns was there

sufficient evidence to suggest that the individuals were ‘workers’. It

reported that it cannot get reliable figures on the number of interns who

complain because it does not record whether a worker regards

themselves as an intern when they ring the helpline. Stakeholders

confirmed that there was a reluctance on the part of some people

undertaking work experience, who believed they were a ‘worker’, to

report complaints to HMRC.

4.81 We understand that in some cases it is not clear or easy to define

whether a person is a ‘worker’ or on a period of unpaid work experience.

However, while it is not illegal to advertise jobs which do not pay at least

the minimum wage, we believe that HMRC should adopt a more proactive

approach to investigating cases and sectors where the term

‘intern’, ‘volunteer’ or ‘work experience’ is being applied, particularly

when work is clearly being advertised. HMRC has indicated that it may

be implementing a new enforcement approach in relation to interns.

We judge this is likely to be appropriate and have asked HMRC to keep

us aware of any developments. We will monitor these carefully.

 

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Here’s what it says on actors and the creative sector in particular…

4.47 Equity highlighted the problem of work being offered for no pay, giving aspiring performers an opportunity to work in the industry. Our Secretariat also met two actors who raised the issue of the complex nature of the law in relation to the entertainment industry and of roles in TV and film being advertised as unpaid when they were clearly work. They wanted it to be made illegal to advertise work for no pay. The actors, along with Equity, had passed details of adverts offering work for no pay to HM Revenue & Customs (HMRC) and felt that some sort of sector specific guidance for employers and agencies in the entertainment industry would be beneficial.

4.48 During a visit to London we met a group of actors who told us of the problems those in the entertainment sector faced. These included: agencies taking their fees from a day’s pay, leaving the worker with less than the minimum wage, and offering no subsequent work to the actor; work being advertised for no pay (but sometimes with expenses); and the complex nature of the regulations in this sector. They told us that those in the industry were reluctant to report abuse for fear that they would subsequently find it difficult to obtain work.

4.49 In November 2009, an Employment Tribunal ruled that workers engaged on an expenses-only basis were entitled to payment at least in line with the National Minimum Wage. The case was brought by a department assistant against a film company and was supported by the Broadcasting Entertainment Cinematograph and Theatre Union (BECTU).

4.50 We have again heard this year about a number of problems faced by those working in the entertainment industry. We understand that the issues are not always as straightforward as they may appear and that two enforcement bodies, HMRC and the Employment Agencies Standards Inspectorate, have an involvement in this sector. While more may need to be done in relation to enforcement of existing regulations, we believe the production and publication of guidance specifically for the entertainment industry would go some way to highlighting the rights and obligations of employers, agencies and workers in the sector.

We therefore recommend that the Government produces, in conjunction with interested parties, sector specific guidance on the National Minimum Wage for the entertainment sector. We will monitor the situation with regard to this group of workers carefully and, following publication of the sector specific guidance, review the effect of its publication.

More information on the Low Pay Commission is available on their website at www.lowpay.gov.uk

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Arts Group on BBC Defends Interns’ Right To Wages

Arts Group Chair, Kit Friend, appeared on the BBC last weekend to defend the rights of interns to proper pay and treatment, highlighting specifically the issues with equality and diversity that the current lack of enforcement encourages.

To see the Arts Group’s recommendations on internships read the Emerging Workers Report here

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BBC: “Interns angry at being ‘exploited’ through unpaid work”

The BBC have published a news feature on the exploitation of interns including a fantastic interview with friend-of-the-Arts-Group Alex Try of Interns Anonymous.

It’s great to see the BBC bringing the issue up. Let’s hope they’ll be paying attention to working practice on all their programmes and making sure to prevent embarrassments like James May’s gloating over the use of unpaid Arts students in his productions.

Full link to the news article: http://news.bbc.co.uk/1/hi/business/8518617.stm

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David Lammy champions Internships – but who can afford them?

In response to growing concerns over graduate employment (or lack thereof) David Lammy championed Internships and volunteering as access routes into jobs in a release from DBIS this morning just after midnight.

‘Of course students may be concerned, which is why we are working hard to show that real opportunities are available to them including work, further study, volunteering and Internships. Internships are great way for graduates to kick start their careers by gaining the valuable skills and work experience at a time when they face a more competitive job market.’

Yes David, ‘a great way’ for those who can afford to be exploited by organizations violating the National Minimum Wage. Thanks a bunch. Welcome to the only government who simultaneously claims to champion social mobility whilst also using unpaid work as a strategy for streaming graduates for recruitment.

 

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Emerging Workers Report Launch

The Arts Group is calling for legislation governing the practice of work experience, internships and placements. In its “Emerging Workers” document the Arts Group puts forward the case that Government action is needed in order to protect students and graduates in the arts and creative industries.

Many arts organisations and businesses are reliant upon unpaid workers, both on work experience and on longer term placements. Whilst the Arts Group recognises that some of these organisations are run on low budgets, it is not in the interest of diversity, equality or creativity for internships to remain as the preserve of the well off.

Kit Friend, Chair of the Arts Group commented “Access to the creative professions should be based on ability, not means. As the labour market is near saturated with those financially able to take up unpaid placements, equal access to the creative professions will not be realised unless internships are regulated by government.”

The Arts Group recognises that the creative sector is made up of a large number of small and medium enterprises, and calls for funding and bursaries to be made available to employers so that they are able to continue to offer internships that are genuine training and development opportunities.

>> A pdf of the report can be downloaded by clicking here

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James May & BBC Exploit Students In Production?

JamesMayFail

Settling down for dinner, imagine my surprise to see the BBC openly admitting to the exploitation of unpaid workers in the production of “James May’s Toy Stories”.  To achieve the production of the plasticine garden in the second episode, James May introduces his model maker, and team of ‘helpers’ thus:

‘these art students are an absolutely fantastic find, and very cheap actually! – ‘cos they’re doing it for nothing! But what I haven’t got the heart to tell them, is that this is actually the workhouse, it’s that victorian ethic again’

Hang on a second James – so you’re actually admitting that you’re using these students and exploiting them for their labour to bolster your production? Because that’s what you’ve just admitted to. You’ve just described that they are providing a service that you need, and you’re not paying them. Have you even heard of National Minimum Wage Guidelines? Well done BBC. You’ve broken employment legislation, and then transmitted it, and one of your key presenters bragging about it. Not only that – you didn’t even bother to thank the students amongst the groups at the end of the programme, or even put their names in your credits.

I’m sure these students, and everyone else involved had a great time on the production. But you know what the difference is? If those students hadn’t been roped in, the BBC would have had to pay some poor production assistants to do the job. Instead they circumvented this and cut their costs by exploiting creatives at the beginnings of their careers who were hungry opportunity. This wasn’t “work experience” – you asked them to complete a service for you, and you didn’t pay them. This from an organization that receives public funding. And don’t push any rubbish about voluntary work – this wasn’t a charity project to help the needy, this wasn’t even an internship with the hint of a job at the end of it. The BBC was producing a progamme here – I presume all the management got paid who worked on it, and I’m certain James May got paid for his disrespectful gloating.

The thousands of volunteers who rolled the odd plasticine flower at the ideal home show clearly did this for a bit of fun. Even the Chelsea Pensioners might be justified as doing this as an activity they enjoyed on a casual level (though James May nicely rewards the veterans who’ve defended his country and freedoms by insulting them with a comment about their poor memory), but here in this programme the BBC has abused the labour of young people clearly doing work, and they’ve openly admitted to doing so to cut on the costs of producing a programme.

Shame on you James May. Shame on you BBC. Now go back and pay the people who made your programme possible.

Witness this appallingly casual abuse of labour yourselves by clicking here

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Sign the No. 10 Petition to ban unpaid internships!

Click here to visit http://petitions.number10.gov.uk/Payinterns/ and sign up to stop the exploitation of unpaid interns in the UK

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Internships and Work Experience, new symptoms, old problem

It’s gratifying to see extensive coverage at the end of this week, from the Guardian amongst others, concerning the dawning awareness that huge numbers of skilled graduates are being effectively forced into a tier of unpaid work masquerading under the guise of “internships”. Those named and shamed include our own MPs with their interns, and many of the sectors that Arts students will emerge into – those deemed to be most attractive and competitive including journalism and media. The reality is that this problem existed even before the recession, and the creative industries have been allowed to build a reliance on this exploited workforce for far too long. If this push is what’s needed to achieve change it’s welcome, but a longer term culture shift that deals with more than the symptoms brought on the by recession is needed. If the Arts, and indeed the Government, are ever going to be an inclusive and accessible sector, those emerging into work must be paid fairly for their skilled labour. That many are not even receiving National Minimum Wage after years of education and professional development is astonishing, and we should not be afraid to take a strong stance on how wrong this is.

The Arts Group’s Chair, Kit Friend, has been in talks with the Arts Council England and others, and discussions with the DCMS and LSE around the subject are expected soon. The Arts Group’s policy on Emerging Workers will be released here imminently following discussion at our last meeting.

Click here to google “Internships Exploitation” and browse the coverage

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