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Are unpaid internships good experience or exploitation?
Are unpaid internships beneficial to young Australians, or a one-way street for the people who aren't paying them?
As internships have become more widespread, there is growing debate about just who they benefit. Is it free labour, invaluable experience, or something only those who are well off can afford to do?
Unpaid internships polarise opinions. Many young workers see them as a chance to showcase their skills and, with any luck, secure a permanent job. Critics see them as
a work-for-nothing trap that is open to abuse from some unscrupulous employers.
Now the debate has moved to the courts. In the US, prominent media groups such as Hearst Magazines, Fox Searchlight Pictures and Condé Nast have faced legal action over unpaid internships, while in Australia sports broadcaster Crocmedia has been in the headlines – and the Federal Circuit Court – over the issue.
That case, among others, has prompted Australia’s Fair Work Ombudsman to closely monitor the position in Australia. We canvass three views on the fairness of unpaid internships.
James Freestone
Investment analyst, Water Rock Capital
James Freestone Investment analyst WaterRock Capital James Freestone describes his experiences as an unpaid intern as “priceless”. After studying in the UK and completing four internships – one paid and three unpaid – 22-year-old Freestone now holds an investment fund management role in China.
He says he could not have reached this position without the opportunities provided by internships.
“The reality is that we live in a world where a university degree is no longer sufficient,” says Freestone. With a long-term ambition to enter a private equity firm, Freestone knew he required many years of experience in investment banking to achieve this dream and saw Shanghai as an opportunity to fast-track his career.
“To enter investment banking, I had to be at the top of my game, so Shanghai seemed like a good place to start,” he says. “Straight after graduating I packed up and left.”
Absolute Internship, a global internship provider based in London, which offers internships in China, Hong Kong, London and Singapore, slotted Freestone into a young company, an alternative asset management firm in Shanghai’s central finance district of Pudong. The internship required picking up the language and culture quickly, and helping to source Chinese investors for a US$2 billion Chicago project.
“The reality is that we live in a world where a university degree is no longer sufficient.”
“I was sent to a Rolex event to find investors and ended up discussing the current strategy of the Royal Bank of Scotland with its chief operating officer,” Freestone says. “The next day I set up a meeting between our managing partner and him, which went down very well at my firm.”
His internship led to a full-time job at WaterRock Capital, with Freestone now leading the company’s European team, which assists real estate development partners.
Freestone’s advice to employers? Give interns responsibility. “The benefits of internships for both the intern and employer blow the negatives out of the water,” he says. “This is a free market and it’s a vital part of someone’s career ladder.”
Freestone points out that interns often apply for jobs after completing a placement.
“So the internship program should be a two-way courting exercise.” |
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