Crocmedia branded ‘exploitative’ after failing to properly pay two interns for months
The treatment of two interns who worked for a pittance for months on end at Melbourne production house Crocmedia has been described as “exploitative” by a judge.
In the first ruling of its kind the company, co-founded by broadcaster Craig Hutchison and journalist James Swanwick, was ordered to pay a fine of $24,000 after failing to properly pay the pair who worked for the company for 14 months and six months respectively.
The duo, one a sports journalism student at university aged 20 to 21 at the time and other was aged 23 to 24 at the time and a recent graduate from a journalism course at university, were producing radio shows for the SEN Network working multiple shifts per week, including the overnight midnight to 6am shifts.
The Fair Work Ombudsman lodged the case in mid-2013 with the courts claiming the pair were entitled to be paid minimum wage of $18 per hour rather than being classed as volunteers, meaning the 21-year-old worker was entitled to be paid $5,767 and the other worker $19,341 his time, as opposed to $2940.
In yesterday’s ruling Judge Riethmuller of the Federal Circuit Court said while Crocmedia may not have intended to underpay the interns, the company was “content to receive the benefits that flowed from the arrangement, and that the arrangement itself, when viewed objectively, was exploitative”.
The company has since reimbursed the workers.
The decision was welcomed as “crucial” by Interns Australia, a lobby group set up to advocate for the fair treatment of interns, with co-founder Colleen Chen saying: “While internships can provide valuable hands on experience for students and job seekers, the lack of provision in employment laws for interns and very high youth unemployment means that we are seeing more and more cases of interns working for free in positions when they should be paid a wage.”
She told Mumbrella the media industry was one of the worst offenders in the treatment of interns, with more young people looking to get into the industry and less jobs readily available.
“It’s getting increasingly hard for young people to get into the media sector, or any where there’s oversupply, where graduates exceed the number of jobs available” she added. “That’s leading to a lot more people doing unpaid work, which in turn leads to employers expecting people to have more experience for entry level roles.”
Asked if she expected to see an increase in the number of cases like this brought by unpaid workers she said “if the US and Canada is anything to go by then yes” pointing to a class action suit settled by publisher Conde Nast last year which paid out US$5.8m to thousands of interns, adding the Fair Work Ombudsman is pursuing several similar cases.
Crocmedia’s CEO Hutchison said in a statement: “We entered into these arrangements with the understanding that they were compliant with employment law. We have always had many young people asking to gain experience in the industry and our intention was to give them a head start.
“Inadvertently we breached workplace laws and we acknowledge we made an error. We have been working cooperatively and positively with Fair Work Australia and accept the penalty handed down.”
Alex Hayes
topics
Condé Nast
CrocMedia
exploitative
Fair Work Ombudsman
free
internships
settlement
unpaid
work
Intern: “student or a recent graduate undergoing supervised practical training” if a intern is actually working and are not being paid then that’s really fucked up…. I know of several agencies that do and it’s not a pretty site
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If slavery had been called internship we may well still have it.
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When I wanted to start out as a copywriter, I was offered a 6 month internship, where i would be writing copy for clients that would actually go to market, with no payment. Zero. It was seen as worth it for the experience. I was offered this after Award School, by 2 of the top 10 creative agencies in the country. I had to turn it down, not believing they could actually find people who would do it. But a friend of mine who worked at one of them showed me that not only did they have willing interns doing this, but I was lucky to be offered the position.
Ive since gone in another direction, but my friends who still work at these agencies tell me they have anywhere between 2-5 interns like this at all times on 6 month stints.
I think that unpaid work for 1-2 months can benefit the employee more than employer, due to training etc. However after this period its unreasonable and is creating an unhealthy media culture where only the existing wealthy can afford to get the experience they need to break into the industry.
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I recently saw a job ad titled as ‘junior graphic designer’, but when I read the description it was actually an intern role that required a recent graduate to be a availabe for 3 full days for a duration of 12 months. Furthermore, it stated that it is a ‘non paid’ position and the right candidate should want to learn and gain the right skills for the profession. Therefore, in other words they are saying that, you chose to be here, so don’t cry about not been paid’. Nice cover up. They’re passive aggressive approach doesn’t fool me!
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Can anyone else hear the sound of many media companies shifting uncomfortably in their seats?
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It is great to see this issue is finally being taken seriously.
As a recent graduate I and many other graduates were expected to work for free for many months across many agencies. Under the guise of “gaining experience”.
When searching for a job even most entry level “graduate” roles expect at least 12 months experience, often forcing graduates to work for months without payment to have enough experience to gain a legitimate position.
It is disappointing that graduates who have invested 3+ years of study and thousands of dollars to gain a qualification then are forced into extended periods of pro bono work, with businesses consistently taking advantage and profiteering from this widely accepted industry practice.
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I’m so glad to read stories like this, I have the upmost respect for one of my very first employers in PR. She paid me $20/hour when I interned for her because as she put it ‘I don’t believe in slave labour.’
I understand that if you’re 15 or 16 to not be paid, you really don’t know anything at that stage (I know because I was one of them). But when you’re a second year university student or a graduate, you’re a skilled person and can do the work – they need to pay them fairly. I remember during my journalism degree I went to The Courier in Ballarat, during my time there I wrote a story entirely independently that was published on the front page. I wrote numerous stories for them the time I was there.
I was paid $10 a day, and that’s because I was ‘impressive’ – the usual pay is $5 a day.
I hope more media organisations are sued in the future for this behaviour and universities stand up for their students who go to these places so it’s fairer for future students.
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All I’ll say is good luck to young people who want to find a way into industries like the media, sport, law etc.
While I don’t advocate or like the notion of exploiting young people, it is – and has been – an unfortunate reality of many industries as workers gain experience. This ruling will do little but to deter outlets from giving young people an opportunity.
I look forward to hearing from Interns Australia when we face our next issue of university graduates finding it even more difficult than it is already to get a job.
As stated above, while not supporting blatant exploitation, Gen Y needs to learn to roll up its sleeves and be willing to work hard to create opportunities.
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Gen – Y roll up your sleeves?! Considering formal internships were rare pre 1990s (source Forbes) I’m not sure when older generations all rolled up their sleeves and worked for free?
grads asking to be paid entry level wages to do entry level jobs is not unreasonable.
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Gen Y should be happy we, the masters of the media universe, are offering top young talent the ability to hone their skills.
When they are earning 100K+ in their 4th year, they can come back and moan about the devils who ran them ragged at the tender age of 21.
Big deal! Grow up and accept this (media) rite of passage.
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Saying these kids worked long hours and weren’t paid properly is the same as saying they work in media. The industry as a whole needs to be under the magnifying glass. I know hard workers with 3-4 yrs under their belts still sitting on $50k. The team at Croc are legends – these kids probably got treated a lot better than any big agency would have treated them!
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Pfft.
Can’t you see that by being unpaid you don’t have to pay off your HECS debt, so collectively we’re doing you a favour?
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Croc was caught out. Not paying people who actually do know what they are doing and are making your company money is wrong.
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Contribute labour outside of a charitable context? You get paid, minimum wage at least. That’s all there is to the equation.
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