The PEI Federation of Labour is taking issue with a private company that's seeking volunteers to work at the Cavendish Beach Music Festival this summer.

The Murphy Group of Restaurants is advertising for 250 people to come forward and work for free at the country music festival on the weekend of July 11, serving food mainly in the VIP area.

The pitch comes at a time when Canada Summer Games organizers are desperately seeking hundreds more volunteers to pull off one of the largest sporting events the Island has ever seen, and the Festival of Lights is also short of help.

Murphy Group vice-president Chris Wright says the restaurant business operates on a tight profit margin, so planning to use volunteers allowed the company to bid low on the contract.

"We're in business to make money," Wright told CBC News. "We put our best foot forward to try and get this contract."

Volunteers will get a T-shirt and a 20 per cent discount card usable at Murphy restaurants across the Island.

Wright hints that volunteering could lead to paid work with the chain, as well as providing the chance to see some famous people.

"We're providing food for the bands and the acts, so … they may get to rub elbows with Reba McEntire or some of the other acts."

Carl Pursey, president of the PEI Federation of Labour, isn't impressed with that incentive.

"With the job crisis across the country, people should be getting paid for what they're working and not … lured into something to work for nothing with the chance of meeting somebody."

Pursey points out that unlike paid employees, volunteers who get hurt in the line of duty would not be covered by the workers compensation system.

He said he will consult with his executive to see whether the federation will take its concerns to the provincial government.