According to Simon Black, “With a few exceptions (under section 3[5] of the Employment Standards Act), unpaid internships are not only unethical, but they are illegal.”
The Associate Professor in the Department of Labour Studies at Brock University, explained, “While employers ‘sell’ unpaid internships as a way to gain valuable experience in a particular sector or business, the reality is unpaid internships are about minimizing labour costs at the expense of young workers. We have to understand their proliferation alongside broader labour market trends such as increasing precarious employment and firms desire for “flexibility”. Unpaid internships reproduce class inequality, as young people from wealthier households can afford to take on such positions, whereas youth from working-class households are less likely to be able to work for free.”
While internships tied to educational programs are legal, McGill University adopted a policy against unpaid internships for students in 2017. Their research showed internships often replace paid, entry-level jobs and that contributes to further youth unemployment.
Unpaid internships also exacerbate social inequalities by excluding students who are unable to work for free. They are also predominantly found in female dominated fields.
There is no advantage in terms of hiring rates or starting salary for graduates with unpaid internship experience, but significant advantages in both hiring and starting salary for those with paid internship experience.
Neither Statistics Canada nor Employment and Social Development Canada collect data on unpaid interns. However, the number of unpaid school-sanctioned internships, co-ops and work placements is about 450,000.
No federal policy governs unpaid internships, co-ops or work placements in Canada – although three provinces have drafted regulations – leaving young workers open to exploitation by employers unwilling to pay them.
Fortunately, innovative organizations and businesses are stepping up to fill that void.
For over 20 years Mitacs has been matching students and postdocs with paid internships in their fields.
“Last year we provided around 6,000 internship opportunities in Ontario alone with demand set to grow to 20,000 internships across the country this year.” said Mitacs CEO John Hepburn.
Hepburn is referring to the findings from a recent Statistics Canada report that found Canada has hit an all-time low ratio in unemployment-to-job vacancy. The situation is making hiring more difficult.
Mitacs is collaborating with a broad range of organizations including Fortune 500 companies, non-profits, and government agencies filling openings with qualified student interns. Particular attention is being focused on small- and medium-sized businesses (SME).
Mitacs internships are designed to address the specific research, development, and innovation needs of the businesses they support. In return, those businesses gain access to the expertise found in Canadian colleges and universities.
Interns work full-time gaining valuable experiential learning while also earning income. The mid-training salaries mean interns are able to live in the cities where they work.
Hepburn believes the financial compensation shows a level of commitment by the companies to the student experience. It also shows students that the company values their labour, talent and innovative ideas.
“Not only will this initiative help address the province’s labour crunch, but it will also sharpen the skills of students, making them more marketable for future jobs,” Hepburn said.
“Another significant bonus is that it will boost Canada’s lagging innovation record, which is believed to have led to sluggish economic growth even before COVID-19 hit.”
Working with over 100 post-secondary institutions, Mitacs supports industrial and social innovation in Canada. Projects involve students from diverse fields including engineering, life sciences, math science, fashion, art and marketing.
Tony Chahine is Founder and CEO of Myant which produces textiles that interact with the human body. His garments can help control stress, improve sleep, manage health and enhance athletic performance.
Chahine has hired over 20 employees through the Mitacs paid internship program.
Columbian student Sandra Aragon was working towards her masters in electrical engineering at Ontario Tech University when she accepted a five-month paid internship with Worksport.
Aragon researched and analyzed the best choice of solar panels to use for solar-charging tonneau covers. When her internship ended, Aragon was hired as a research and development engineer.
Today’s competitive market means employers have to do more than just provide job opportunities. To attract young people, jobs need to be made as attractive and interesting as possible.
Caseware, an innovative audit and accounting software provider, just released their 2023 State of Accounting Firm Trends Report. The survey of accountants and auditors found that 90 per cent of respondents said their biggest challenge was hiring and retaining skilled talent. Some respondents reported turning down business due to staffing shortages.
Caseware CEO, David Osborne said, “We’re working with accountants and auditors to change this reality and help them attract the new wave of professionals who see themselves as creative and problem-solving individuals.”
The accounting and auditing industry is transitioning and will look significantly different in the future. What has traditionally been seen as a tedious, number-crunching profession is rapidly transforming into one that’s dynamic, driven by analytical insights and focused on creative collaboration.
Cloud-based solutions, intelligent automation and other innovations are creating new business opportunities and opening up new career paths.
“Hiring talent early in their career is something I’m extremely passionate about,” shared Osborne. “Students and new grads have always played an important role in helping Caseware shape the future of accounting technology. Caseware’s co-op program allows students to grow in their field, experience a genuine work setting, foster curiosity, and celebrate successes.”
Caseware hires upwards of 80 co-op students annually as DevOps developers and junior accountants, but also to work on marketing, social media and software development.
“Hands-on work experience for university and college students and recent graduates through internships is key to giving them real-life problem-solving skills that are critical for the future workforce and which they just can’t get in the classroom,” said Hepburn. “It’s a win-win for students, industry and Ontario’s prosperity as a whole.”
Support rabble today!
We’re so glad you stopped by! Thanks for consuming rabble content this year.
rabble.ca is 100% reader and donor funded, so as an avid reader of our content, we hope you will consider gifting rabble with a donation during our summer fundraiser today.
Whether it be a one-time donation or a small monthly contribution, your support is critical to keep rabble writers producing the work you’ve come to rely on as a part of a healthy media diet.
Become a rabble rouser — donate to rabble.ca today.
Nick Seebruch, editor
