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Book Review – Intern Nation

July 4, 2011 by and tagged , , , , , , , , , , , ,

Welcome to the brave new world of work, where you work more and get paid nothing! Travailler plus pour ne rien gagner (maybe that should be Sarkozy’s slogan for his reelection campaign!). This is the reality experienced by more and more people in the US, and thoroughly explored by Ross Perlin in Intern Nation: How To Earn Nothing and Learn Little in the Brave New Economy.

The premise of the book is that internships have exploded in numbers as they have become an almost mandatory of someone’s education in order to gain legitimate entry on the labor market. But Perlin considers them to be “a form of mass exploitation hidden in plain sight” (xiv), with roughly 9.5 million college students, roughly 75% will participate in at least one internship before graduation. He argues that a significant share of those are unethical if not illegal.

In other words, interns are becoming the fastest-growing category of American workers, the largely unpaid ones.

The simple fact of non-payment, for Perlin, also points to the fact that internships have become a site of reproduction of privilege as only those of financially comfortable background can hope for the glamorous internships in Congress, in Hollywood or television and journalism that truly open doors for permanent (and paid) jobs, guaranteeing that the upper-classes will remain the major cultural producers in the mass media. In that sense, internships contribute to both exploitation and reproduction of inequalities in opportunities.

Finally, Perlin argues that internships devalue labor, especially for young people and at entry-level positions at the same time that interns may displace workers.

The book itself is full of a variety of examples in a diversity of settings. The first chapter is dedicated to the Disney internships whose promotion is so present at so many college campuses, as Disney runs one of the largest internship program, with 7,000 to 8,000 interns every year:

“In its scale and daring, the Disney Program is unusual, if not unique – a “total institution” in the spirit of Erving Goffman. Although technically legal, the program has grown up over thirty years with support from all sides with almost zero scrutiny to become an eerie model, a microcosm of an internship explosion gone haywire. An infinitesimally small number of College Program “graduates” are ultimately offered full-time positions at Disney. A harvest of minimum-wage labor masquerades as an academic exercise, with the nodding approval of collegiate functionaries. A temporary, inexperienced workforce gradually replaces well-trained, decently compensated full-timers, flouting unions and hurting the local economy. The word “internship” has many meanings, but at Disney World it signifies cheap, flexible labor for one of the world’s largest and best-known companies – magical, educational burger-flipping in the Happiest Place on Earth.” (3-4)

Needless to say, Perlin is merciless in his investigation of the world of internships, and Disney is not the only entity getting a drubbing, but is presented as somewhat representative of the trend: “a summer job with a thin veneer of education, virtually unleavened by substantive academic content.” (8).

Perlin identifies two major post-War trends that contributed to the internship explosion:

1. The rise of the “new” economy, post-industrialism, service jobs and networked capitalism along with its cohort of contingent labor. This casualization of the workforce is a well-known trait of the post-fordist regime based on flexibility and exploitation and the rise of the ubiquitous “independent contractor”, a catch-all category.

2. The rise of the field of Human Resources and the “Human capital” approach to education.

What this boils down to is what Bauman and Beck have described as individualization in the post-modern era. Students now have to see themselves as having to cultivate individually their own human capital and internships do just that. The student is his/her own entrepreneur, an entrepreneur of one’s self, one’s own independent contractor.

This is also part of the trend of vocationalism in education, that is, seeing education as job training rather than, well, education.

Perlin also notes that internships have also risen on the ashes of traditional apprenticeships that have a medieval connotation and have long been associated with industry and the trades. There are still a few apprenticeships in the US, they are usually paid, with benefits and unionization. There is still an Office of Apprenticeship as part of the government but it seems to be a well-kept secret and the trades are not the hot career when one dreams of working for Google.

I was also surprised to learn that a great deal of internships might actually be illegal (not that anyone is watching). The Fair Labor Standards Act is still the law of the land and, based on a US Supreme Court decision and explained by the Wage and Hour Division of the Department of Labor, one category of people is exempt from the FLSA provisions: trainees. And since the USSC has never ruled on interns, they are considered trainees, therefore exempt. Except that there are six condition that must ALL be met for trainees to be exempt, as listed by Perlin:

  1. The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school.
  2. The training is for the benefit of the trainee.
  3. The trainees do not displace regular employees, but work under close observation.
  4. The employer that provides the training derives no immediate advantage from the activities of the trainees and on occasion the employer’s operations may actually be impeded.
  5. The trainees are not necessarily entitled to a job at the completion of the training period; and
  6. The employer and the trainee understand that the trainees are not entitled to wage for the time spent in training.

All six criteria have to be met for a position to be considered exempt. If one of these provisions is not met, then, it’s a job and it falls under the provision of the FLSA. How many internships actually meet all six criteria? Who knows. So, employers just looking for cheap labors should not get interns or their internships are illegal. But again, who’s checking? Although Perlin does mention that the Obama administration did increase the number of DOL inspectors.

More than that, because they are not considered workers, unpaid interns receive none of the protection against discrimination or harassment that regular employees get (however inadequate) and they have no legal recourse. On the other hand, corporations receive $124 million annual contribution in the form of free labor.

Perlin is also severe in his critique with regards to what he considers the complicity of colleges and universities in the explosion of exploitative internships. Schools endorse internships without a second thought. Sometimes, they make money off of deal with employers or non-profit organizations. And they provide the academic cover in the form of academic credit for sometimes questionable internships. Often, academic credit is supposed to replace the pay that anyone would normally receive for the same work that interns do. So, not only do students pay for credit, but they don’t get any pay for the internship. They pay to work for free.

“In certain cases, paying college tuition to work for free can be justified – particularly if the school plays a central role in securing the internship and makes it a serious, substantive academic experience. Providing credit certainly can cost the school in terms of supervision time and administrative work, although the costs are unlikely to match those of a classroom experience. And in the most miserable, increasingly common scenario, employers use the credits in an attempt to legitimize illegal internships while universities charge for them and provide little in return, and interns are simply stuck running after them, paying thousands of dollars for the privilege of working for free.” (86)

Instead, of course, colleges and universities actively promote internships  just like they have online education as a low-cost (for them) option to get money from students. The worst offenders, in my view, have the (often for-profit) colleges and universities who offer their credits to highly expensive private internship-abroad organizations (both shall remain nameless, as in, no free publicity, but their practices are truly disgusting) who charge thousands of dollars for unpaid internships outside of the US, but there are also all the non-profit organizations, largely staffed by interns in the name of “service-learning” or the start-ups that wouldn’t even get off the ground if they didn’t use free labor. How many NGOs or such companies would not function without free labor? Or maybe they would need to revise their activities or business plans or pay interns minimum wage.

The other issue that is central, in my view, and that Perlin discusses at length, is this: what about the students who have mandatory internships in their curriculum but cannot afford unpaid work? Or whose parents cannot support them? Well, they get left behind in the race to pad one’s résumé with prestigious internships. In other words, the ability to engage in unpaid internships is yet another privilege that the already-privileged enjoy, at the expense of other students. While privileged students might spend the summer on Capitol Hill, interning for a Congressperson for free (even though there is a big bogus element to these internships, as Perlin shows), others actually have to work to pay for next year’s tuition.

And in addition to the experience and the lengthening of one’s CV, these privileged students get to network and accumulate social capital, something that their less privileged counterparts do not get to do. And finding prestigious internships in the first place is a matter of social connections. For instance, the donor to an NGO can pretty much impose to have a child or relative or friend as intern. Access matters a lot, when it comes to internships.

“Many internships, especially the small but influential sliver of unpaid and glamorous ones, are the preserve of  the upper-middle class and the super rich. These internships provide the already privileged with a significant head start that pays professional and financial dividends over time, as boosters never tire of repeating. The rich get richer or stay rich, in other words, thanks in part to prized internships, while the poor get poorer because they’re barred from the world of white-collar work, where high salaries are increasingly concentrated. For the well-to-do and wealthy families seeking to guarantee their offspring’s future prosperity, internships are a powerful investment vehicle, and an instrument of self-preservation in the same category as private tutoring, exclusive schools, and trust funds. Meanwhile, a vast group of low- and middle-income families stretch their finances thin to afford thankless unpaid positions, which are less and less likely to lead to real work, and a forgotten majority can’t afford to play the game at all.” (162)

And did I mention that women are more likely to get unpaid internships than men?

And you wonder why there is an ideological continuity between politics, news and think tanks and other organizations. It is a Village and they’ve interned there before.

Part of the issue is that there is a high demand for internships (as a result of becoming an academic / graduation requirement), so much so there are now internship auctions where employers auction an internship and potential interns bid on it, and it goes to the highest bidder but not the most qualified candidate.

Of course, other countries are getting on the action as well, exploiting interns. Remember Foxconn, the company that makes your iPad and other Apple goodies, that became famous because its working conditions were so awesome that workers kept killing themselves? So much so that they now have to sign contracts promising not to commit suicide? Yup, that Foxconn… Check this out:

“Foxconn seems to have become the world’s biggest abusers of internships. According to a detailed report recently compiled by university researchers in mainland China, Hong Kong, and Taiwan, the company uses interns extensively in at least five of its major plants, compensating them at the lowest possible pay grade (under $200 per month) and often forcing them against the law to work nights and overtime. In order to avoid paying for the medical and social welfare owed to regular employees, Foxconn has in some cases reportedly filled more than half of its assembly line jobs with interns – usually with the cooperation of hundreds of schools that stand to receive a fee in return.” (196)

Welcome to the new world of labor casualization, precarization and flexibility. These global workers now have their very own patron saint: San Precario

Also, San Precario is transgender. The five icons represent income, housing, health, communication and transport. That is, there is, hopefully, a rising movement against precarization, that includes interns, as part of the global civil society.

Perlin himself offers a series of recommendations to make internships more meaningful and more fair, based on the six criteria above. But most of all, his book is a wake-up call to a major trend that has gone largely unrecognized and unexamined, and one can see why. It is an important book for anyone interested in labor issues and the future of work.

Posted in Book Reviews, Corporatism, Economy, Education, Labor, Precarization, Public Policy, Social Capital, Social Exclusion, Social Inequalities, Social Privilege, Social Selection, Social Stratification, Socialization | 2 Comments »



2 Responses to “Book Review – Intern Nation”

  1.   cybernoelie Says:

    When I read about internships and the abuse of these people I can’t help but think of the financial markets and how they went from stocks and shares and commodities (mostly things that you could actually own or have a piece of paper or a warehouse full of the stuff etc.) and it ‘innovated’ to options and futures and then on to m0rtgage-backed securities (MBS), collateralized debt obligations (CDO) and finally (disastrously) credit default swaps (CDS). I can’t help but think that if we don’t ‘invest’ properly in people and insist on the ‘precarization’ of people then are we not in effect making people into these invisible, non-tangible CDOs or CDSs? All things solid etc. and we eventually end up with some nebulous cloud (iCloud anyone?) of people who have no social or human capital? That’s a frightening thought.

    Reply

    •   SocProf Says:

      I think you’re exactly right and this goes along with Zygmunt Bauman’s Liquid Society thesis.

      And part of the thesis is the individualization of human and social capital: you need to invest in yourself, be your own PR person for the brand of YOU, because it ain’t gonna happen through social means, which, in turn, is another form of stratification and inequalities.

      Reply

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