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Category: Budget / Government and Politics / Welfare / Industrial Relations / Youth

Fears $4-per-hour internships could exploit workers

Wednesday, 4 May 2016 12:54:35 | Kristian Silva

Broderick Mulvaney says earning just $4 an hour would make a difference to his life.

The 21-year-old Tasmanian, who is currently on youth allowance, and has spent the last three years looking for work after closing his electronics repair business.

While union groups have attacked the Federal Government's proposal for an internship program with a maximum wage of $200 for up to 25 hours' work per fortnight, Mr Mulvaney said he would be keen to participate.

"I would do it, simply because it's a bit of extra money," he said.

"I wouldn't have to stress so much about my bills. I have pay-as-you-go power so to make sure we don't run out before I get paid next, so, even being paid $4 an hour would still improve how I can live my life."

The Government's $840 million program is aimed at getting under-25s into jobs, and is part of a three-stage process that involves pre-employment skills training.

Every day I see people abusing unemployed people on social media. They assume it's so easy to get a job, but here in Tasmania it's not.

Broderick Mulvaney

Businesses that take on interns for the four to 12-week program will receive a $1,000 bonus. They could then pocket up to $10,000 if they hire a job seeker who has been in employment services for six months or more.

Interns' wages would be on top of existing social services payments.

'We're not all a lost cause'

Mr Mulvaney said the job hunt was difficult, and at times a depressing experience.

"Every day I see people abusing unemployed people on social media. They assume it's so easy to get a job, but here in Tasmania it's not," he said.

"It's hard and it makes me feel terrible that that's what people must think of me, as a leech on the system. Working for so little might make people see that we're all not a lost cause."

Carly Dixon Photo: Jobseeker Carly Dixon says she supports the Government's internship program. (ABC News: Philippa McDonald)

Sydney jobseeker Carly Dixon, 19, said she was having no luck in her search for a business traineeship, and she would also welcome the opportunity to take part in the new program.

"I think it would be a lot better than what most people do when they're on job seeker [social security payments]," Ms Dixon said.

"Most of them, all they do is just go to their appointments and just lay on their arse and do nothing.

"I hate being on Centrelink. I want to be able to look after myself when I get older."

Advocacy group fears interns will be exploited

The head of advocacy group Internships Australia, Dimity Mannering, said she was concerned the program would lead to "huge opportunities for exploitation".

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"When you start giving employers an option to pay less than the minimum wage, or to indeed not pay people at all, they tend to take that on and they'll bring in interns and that will be at the expense of real jobs," she told 774 Melbourne.

Ms Mannering said her group supported internships where candidates were paid fairly, received support and mentoring, and were not taking paid employees' jobs.

"From our perspective, this doesn't meet any of those tests so it's a bit of a concerning proposal."

Dr Amanda Elliot the University of Sydney's Department of Sociology and Social Policy said the program was "unlikely to be a good introduction to work for young people".

"This is welfare reform that undermines minimum wages and relieves businesses of paying for training young employees."

On Tuesday night, the Australian Council of Trade Unions also criticised the scheme, however it was backed by the Australian Council of Social Services.

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