17 September 2024

University students should be paid minimum wage for internships, inquiry finds

| Oliver Jacques
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nurse in hospital stockroom

Students were skipping meals, fearing homelessness, scrounging off parents and paying double rent while doing study placements, including in ACT hospitals. Photo: Claire Fenwicke.

University students required to do work placements or internships as part of their study should be paid the minimum wage for doing so, an ACT Legislative Assembly committee inquiry has concluded.

However, the Inquiry into Unpaid Work final report, published this month, did not specify who should fund this payment. Rather, it recommended “that the ACT Government continue to work with and advocate to the Federal Government to address the ongoing needs of ACT students undertaking mandatory unpaid placements”.

Angela Kagucia, of the University of Canberra (UC) Student Representative Council, gave evidence to the inquiry stating that internships sometimes required students to work full-time hours at an unpaid placement, meaning they didn’t have time to do paid work to cover their bills and living expenses. She therefore suggested interns be paid a stipend by government.

The inquiry heard that students were skipping meals, fearing homelessness, scrounging off parents and paying double rent while doing study placements.

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Mushtaha Ahmed, the UC student body’s president, said ACT students were particularly disadvantaged as they often had to travel interstate to do study placements.

“I’m happy the committee has acknowledged our issues,” Ms Ahmed told Region.

“Our aim in coming to the inquiry was to highlight students’ opinions and to explain what they’re going through and to ask for help … I’m looking forward to the next steps and actions, that’s what’s important.

“Anything they do needs to be co-worked with students, they need to understand more from our side to come up with a structure of support that’s impactful.”

Ms Ahmed, who is studying pharmacy, said she’d had to do several two-week placements that had been unpaid.

“It’s a struggle having to take two weeks off work, and it can be a financial burden if you get a placement somewhere where there is no transportation … or if you have to do it away from where you live.”

After considering evidence from Ms Ahmed and others, the inquiry committee concluded that “while students are unable to undertake paid work because they are on a placement, and are unable to be paid for the work they undertake as part of that placement, they should receive a stipend equivalent to the minimum wage to support them through that period”.

The Federal Government will introduce placement payments of $319.50 in July 2025 for teaching, nursing and midwifery students. This is well below the minimum wage and excludes several disciplines.

“Every bachelor course has a placement,” UC Psychology Society president Taylor Geoffroy told the inquiry. ”Most TAFE courses have placements as well. Pretty much every student who is not included [on the Federal Government’s list] is affected.”

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The inquiry committee also acknowledged that carers of elderly family members and people with disability often did unpaid work that was not properly recognised.

It recommended the ACT Government consider introducing a carers’ recognition card to promote understanding and recognition of carers within the ACT and enable them to access priority services with government agencies and providers.

The Inquiry into Unpaid Work was chaired by Liberal MLA James Milligan. The final report can be downloaded from the ACT Legislative Assembly website.

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Absolutely ridiculous idea! Businesses wouldn’t offer internships in the first place if they were entitled to a wage. In most cases this is the first time they’ve ever worked in a job and most of the time are just watching or even hindering the other staff. Their value add barely justifies the desk space or coffees provided to them for free.

Bollocks. If interns are such horrendous workers, then why do businesses offer them, bar for the fact that they get the labour for free – and therefore must provide some value to the business from doing so.

Typical business lobby dribble.

devils_advocate11:42 am 18 Sep 24

If your business relies on free labour for its existence, it’s not much of a business.

See further: American civil war

@Sam Oak
I’ve seen this in action on many occasions in the past. It’s hardly school kids on work experience, these are tertiary students who have the theoretical knowledge and with a little guidance can garnish it with practical experience that will lead to then being valuable contributors in their chosen profession.

Typical WIIFM perspective from you.

You just want slave labour. Given your parsimonious attitude, these students will probably be better off not doing an internship with you.

What kind of businesses are you referring to?

For a lot of the degrees being talked about, the placements are quite long, and the student provides a valuable resource to the host organisation. Yes, they create some work for those who have to formally supervise them, but they also do work, and in may cases there is a substantial net benefit to the host.

Why are businesses made to pay? The universities milked them of all their money and we are simply offering practical education for free yet we have to foot the bill? Seriously the lack of common sense around here never ceases to amaze. It’s not force businesses to pay for internships so that everyone instantly gets more money. The SUPPLY of internships will just go down so no one gets practical training in the first place!

@Sam Oak
So don’t offer internships … with your self-centred attitude, students would be better off interning elsewhere.

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