Well I have seen this first hand in Engineering now in the US and it's evil plain and simple.

I have an old high school friend that is the VP of engineering at a small company and they used to have about 10 full time employees. They went through a period of slow business and laid most of them off. At first it was literally down to just him and the president of the company and their families that were doing all the work. Then, as business would pick up, they would hire in some temps and almost by accident they realized they did not have to pay benefits if they let them go before 90 days and they could pay them well below industry rates and they were literally chewing holes through each others asses to get in the door.

The light bulb went off and he realized if they do not hire full time employees they don't have to pay out any benefits and they get to pay them crappy wages and they have a practically endless supply of people that they can exploit.

Personally I found this to be amoral. But they went beyond that and recently started doing just what DD is doing above and started hiring unpaid interns. Now business is booming and they have about 30 empolyees and half are temps that they roll out every 89 days and the other half or so are unpaid interns that work their asses off for free and then can't find work when their hitch is done because companies just roll in a new wave of unpaid interns!

He was bragging to me one day at lunch that he has one employee that is commuting 300 miles a day and he pays him $9 an hour and makes the guy provide his own tools and punch in and out of a clock for lunch. He went on to say I'd never get a veteran guy to tolerate this. He said with a smirk that after paying for gasoline, taxes, tools, and basic things like lunch he was lucky if he was clearing $25 a week. Then went on to say how much business they were getting and that they would have to be expanding soon.

So they now have three times the staff they used to have, only pay half of them, and the half they pay at sub industry wages with no benefits. He just bought a new 2.5 million dollar house and vacation home in Italy. Meanwhile I have sat for sevaral years looking for an engineering job and I have over 25 years of experience, a Phd, masters, and two bachelors degrees but can't find work in large part because of this new "work experience" scam.

So there is nothing anyone is going to say to make me believe this is anything but what it clearly is, a way for greedy business majors to exploit people for free labor and no one is never going to justify it to me!


update:

I asked him once if he would get sub par employees with this model and his response was "We are an at will state (meaning you can be fired without reason or cause) and so we may get a few lumps of coal but we also get diamonds as well and it tends to balance out in our favor."