People Are Sketchy About The Government’s $4 An Hour Internship Scheme

One of the Government’s big programs announced in the budget last night is the wildly capitalised sponsored internship scheme named PaTH. In brief, it involves the government incentivising businesses to hire young people on Newstart as part of ‘internship progreams’, for which they would be paid $100 a week on top of their regular allowance for 15 – 25 hours per week.

Our initial reaction was a little uneasy –  it seems like a source of well-below minimum wage labour for businesses, and a stopgap solution for both unemployment and the issue of unpaid internships.
Well, looks like it’s a widely held sentiment. The Australian Council of Trade Unions called it a “$4-per-hour jobs for young people” scheme, and the Australian Manufacturing Workers Union said it was “yet another layer of unpaid labour which is actually going to be subsidised by the taxpayer.”

It’s definitely a concern, because as a financial arrangement it doesn’t sound like there’s dramatically equal benefit. Especially seeing as many of the examples the government gives in its own documentation aren’t for high-flying tech internships – they’re for things like ‘working in a supermarket’.

The folks on Twitter bit back too, pointing out that the scheme looked ripe for exploitation:

There are some fans, though. The Australian Council of Social Services think it’s a good way to “[provide] an opportunity for young people to get work experience in real jobs”, and peak business bodies are generally in agreement that it’s a better way to do it than old work-for-the-dole schemes.
We’ll have to wait and see whether the voters think this is a compelling solution. But from the outside it certainly looks like an easy way for business to source cheap labour and avoid paying minimum wage.
Source: ABC News.
Photo: Getty Images / Stefan Postles.

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