No Wage Ghetto: Unpaid Internships in Ontario's Retail Sector

The growth of unpaid internships in Ontario's labour market is alarming. Traditionally, the highest incidents of illegal unpaid internships have been found in the glamor industries (i.e. magazine publishing, public relations, media, and fashion), but increasingly we're seeing a creep of these positions into both low-wage (i.e. hospitality, retail) and high-wage sectors (i.e. law, health-care).

Today's blog post is focused on a recent example of unpaid internships in Ontario's retail sector. Unpaid internships in the retail sector are on the rise and there has been little coverage of this disturbing trend. The example I'm using comes to us courtesy of Untitled and Co., a Queen West clothing store specializing in sexist anti-women sweatshirts, which recently posted an advertisement asking for multiple unpaid interns. Untitled and Co. is looking for: a Sales Intern, a Design Intern, a Production Intern, and a Merchandising Intern. 

The advertisement targets students needing hours to graduate and recent graduates looking for experience. The advertisement discloses probable violations of the Employment Standards Act, 2000 as typically you have to pay employees the minimum wage of $10.25 per hour. Simply put, the circumstances where an employer is allowed to not pay the minimum wage are extremely limited. What Untitled and Co. are attempting to do is mostly the unholy (but common) combination of wage theft and employee misclassification.

I fail to see the educational benefits of working in retail store and this raises an issue of whether post-secondary educational institutions should be letting employers access free labour via students. Another issue that this advertisement raises is whether the Ministry of Labour needs to drastically step up enforcement efforts around unpaid internships. With unpaid internships creeping into low-wage sectors we're be seeing the decimation of the youth labour market, wages driven down, and certain sectors of the population crowded out of work altogether. 

See the advertisement from Untitled and Co. below and feel free to call them at 647-748-3114 if you don't like what they're selling. Take a look at some of my previous articles about unpaid internships, see: here, here, here, and here.

Why Can't Wind Mobile Pay Their Interns?

Just a short post today. Canadian telecommunications companies are among the worst offenders when it comes to exploiting young workers in Canada. Misclassification of employees as interns and wage theft seem to be quite common in the industry. Previously, I've detailed the human resources practices of Bell Mobility in their Professional Management Program, but what's occurring at Bell Mobility happens with alarming regularity at the other telecommunication companies as well (see this article about Rogers).

Today the Canadian Intern Association posted an article detailing how Wind Mobile is hiring a score of unpaid interns and failing to pay them the prevailing minimum wage (which is $10.25 in Ontario). This is massive company with access to huge amounts of money, so it's disgusting that they would choose to engage in this highly questionable (and arguably illegal) practice. Examples like this point to the need for proactive enforcement of minimum employment standards within the Federally-regulated sectors - an area that has been totally neglected by Stephen Harper and Lisa Raitt. 

Under the Canada Labour Code unpaid internships are prohibited when the intern is performing work. Under "Hours of Work - 802-1-IPG-002", a policy directive published by Federal Department of Labour, it states that training scheme of longer durations where a person is performing aspects of a job a de-facto employment relationship develops and the person must be compensated for the hours that they work. Legalities aside, posting multiple unpaid internships like this reeks of exploitation by a corporate giant that could easily pay the minimum wage.

Working This Summer? Know Your Rights

Today I'm appearing on CBC Radio's Ontario Today (tune in after 12:30 pm to listen to me) to discuss the topic of "crappy summer jobs". I thought that I would collect a few resources that young workers and their parents can use to navigate the world of work. I'm going to highlight five main areas: how to find a job, occupational health and safety, employment standards, human rights, and tips to protect yourself.

How To Find a Job?

If you're a young worker who needs a job for the summer your first stop should be a youth employment centre. First Work offers a list of youth employment centres in Ontario and even has a searchable map. Beyond going into a youth employment centre, a tried and true method is searching online - websites like Jobbank, Eluta, Monster, Wowjobs, and Workopolis contain thousands of postings across the province. Another good technique for finding work is networking with family, friends, and people you know in your community.

Occupational Health and Safety

Far too many young workers are injured or killed on the job every year in Ontario. Ensuring that you're safe at work is critical. Whether it be working with chemicals, around heavy machinery, or dangerous tools - you need to be aware of the environment that you're working in. The critical piece of law in this area is the Occupational Health and Safety Act.

The Ministry of Labour offers a number of online resources about staying safe at work. Check out this tip sheet, these podcasts, and these health and safety tools. If you get injured at work then you should realize that you may be entitled to compensation under the Workplace Safety Insurance Act via the Workplace Safety Insurance Board ("WSIB"). The WSIB has a section of their website devoted to educating young workers about staying safe on the job.

If you need help with a health and safety related issue, these numbers are key: Ministry of Labour - 1-877-202-0008, WSIB - 1-800-387-0750, Office of the Worker Advisor - 1-855-659-7744.

Employment Standards

Every year tens of thousands of young workers in Ontario are the victims of employee misclassification, wage theft, and illegal deductions. For the most part the Ministry of Labour refuses to proactively enforce employment standards when it comes to young workers, so it's incumbent on you to understand your rights in the workplace. The Employment Standards Act, 2000 ("the ESA") contains protections in the areas of minimum wages, hours of work, overtime, and days of rest.

The Ministry of Labour's website contains some information about employment standards - there's a good workbook covering the main parts of the ESA, and FAQ for young workers, and tools for calculating wages, overtime, and vacation pay. If you need help with an employment standards related issue the best number to call is the Ministry of Labour at: 1-800-531-5551.

Human Rights

No one should tolerate discrimination or harassment in the workplace. Sadly, young workers are frequent targets for illegal abuse in Ontario's labour market. The key piece of law in defending your human rights is Ontario's Human Rights Code. This law outlines the obligations that employers have in creating an environment that respects employees human rights. The Ontario Human Rights Commissions lacks specific resources for young workers, but has published a summary about resolving human rights issues in the workplace, an overview of how the Code applies to employment, and an introduction to human rights in Ontario. 

If you need help on a human rights related matter here are some organizations to contact: the Human Rights Tribunal of Ontario - 1-866-598-0322, the Human Rights Legal Support Centre - 1-866-625-5179, and the Ontario Human Rights Commission - 1-800-387-9080.

Tips For Protecting Yourself

There's no exhaustive list about how to protect yourself in the workplace, but I've come up with a top five list of sorts. In no particular order here's my list. (1) If you're having a problem in the workplace talk it out with a friend, a parent, a teacher, or someone you trust. (2) Keep track of all the hours you work. (3) Keep copies of your employment contract, emails with your boss, and any other documentation you receive. (4) Trust you gut. If something seems wrong, then it probably is. (5) Make sure you're being paid the minimum wage. For the vast majority of workers it's $10.25. Unless you're cover under an exemption you should be paid it.