Earlier quoted context omitted.
This is one of those examples where a totally well intentioned move is completely misunderstood. What is the purpose of an interview? To see if someone's a good fit and works well with you. Interviews don't tell you that. Working with the people fixes that. At least these are paid contracts. It's one thing if they were unpaid, then sure, yes it sucks. But it's the equivalent of doing a freelance gig for a couple of w…
I think they find it disgusting because all the risk is shifted onto the employee. By the time 3-8 weeks have elapsed, the employee has definitely quit or lost their previous job, so if they don't get hired, they will be involuntarily unemployed, with no prospects because they've been busy with their "audition".
The salary negotiation is itself about trading getting the employer to basically take care of you (especially in Japanese corporations, as patio11 often mentions) so you can reduce your risk. The infantile mentality inculcated in people receiving conditional welfare is present in FTE -- pg's essay about schools and jails would be applicable here. One can even argue that our education system has been designed to prepare the majority for being obedient and loyal FTE workers.
http://www.paulgraham.com/nerds.html
I'd rather society replaced all this with an UNCONDITIONAL basic income for everyone and everyone would be free from any age to work as a self employed contractor. That would effectively abolish the minimum wage and let people learn through doing projects where they are treated with respect, not as animals in a zoo.
I think libertarians talking about philosophical freedoms should take a serious look at actual personal freedom as defined by the range of options each person has.