These companies are not dumb. They know that people come to rely on their jobs and that the market is such that they can't just quit the moment they feel undervalued.
My previous employer, for whom I worked diligently and above the call of duty for years, came to treat me that way. They assumed that because I need flexibility because of my family situation I would put up with bullying and stay forever as a mohawked asshole moved in and played empire builder. They were wrong.
That's why they force them to become contractors and offer low pay. The market is broken because of a lack of supply and inflexibility due to, you know, life and family. Libtards imagine that people can be perfect rational actors and will rip their kids out of school and away from their friends at the drop of a hat, but reality isn't like that.
My current company is rife with contractors, more than I've ever seen before. I suspect that there are multiple reasons for this, including
1) The hiring process is massively ossified: people extended FTE positions have often given up and gone elsewhere by the time the company gets around to making the offer.
but likely even more
2) Contractors don't get benefits, insurance, bonus.
which is a convenient dodge around discriminatory hiring laws, effectively avoiding people with families or souls, those over 25, and citizens.
Re expectations of working unpaid overtime: exactly the opposite in my department, contractors work 40 / week, period. Overtime has to be approved by management and is not common.
[quote]As a contractor, you get higher pay which more than compensates the additional taxes you need to pay and your health care costs. Unless you are stupid[/quote]