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The problem with mandatory work is that someone will benefit from that work and so it'll be in their interest that more people be condemned to it. It would need to be organized in a way that companies didn't profit directly from increased convictions.
I'm guessing it was less of a suggestion and more of a guess as to "What's the most probable way that slavery sneaks back into society."
And I agree with them. Jails are already overloaded and private companies are making bank on it. I could see them offering mandatory unpaid work in lieu of jail time. Of course where you have to work would be determined by which company has the highest bid.