Companies are struggling with the economy. It is difficult to keep their employee payrolls. Many companies are now trying new tricks to cut costs. One of which is getting low paid interns. With a tag line like "giving unexperienced worker a chance to gain knowledge", employers are increasing their internship programs. Many managers see it as the cheaper way to double the workforce and make a higher profit. Many people who were fired from the recession, now finding themselves in the position of these low paid interns just to live by.
Another trick to to increase overtime. Since many companies already laid off their employees, the rest need to work much harder to compensate for the loss. The employees are paid more for their overtime, but they must work much harder since the schedule is mostly on everyday of the week. They stated that overtime helps them to take care of their family and maintain a higher lifestyle with more money coming in. It seems to be a win-win for both employers and employees.
Companies also take advantage on the foreign workers. Most of foreign workers have a much higher skills and degrees than the average American since not everyone could come here. For example, Indians who finished their college back home and came to America for grad schools. These people are offered jobs with a much lower paid. Things get much worse for illegal immigrants who works at basic jobs. These people do not have their rights protected and many companies are taking advantage on it.
Sources:
http://www.nytimes.com/2009/11/28/your-money/28interns.html?_r=1&ref=business
http://online.wsj.com/article/SB125926676195965443.html
http://www.nytimes.com/2009/11/28/business/global/28return.html?scp=1&sq=&st=nyt
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