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Actually, Mark makes a good point which a lot of people here are failing to see.
Let’s put aside the notion of justice and punishment for a moment and take a look at the effect this sort of thing has on the low-skilled economic sectors. Employers that need to fill low skilled positions are not going to pay someone a wage for doing the role when they can get workers for free. It is for this same reason why employers love immigrant workers so much(whether that be Mexican store workers or Indian call centre workers etc) because they cost less to employ than indigenous workers do and with that comes the fact that nothing is cheaper than free which is where we stand now with this thread topic and why more and more businesses are using prison workers these days as well.
Now, going back to the justice and punishment angle. Do you know what else forced unpaid work is used as punishment for(aside from being doled out by courts as the substitute to jail time for all low level crime as well as being the main punishment for those currently doing jail time anyway)?, it is used as a punishment for being unemployed and is a legal condition for the continuation of social security allowances.