It's not just that they're looked at as less than, it's that they have to be treated as such. I'm on a sort of "party" committee at my work (I know, I know) and we are explicitly told we have to go out of our way to ensure no one on contract gets invited to the events, receives any of the (shitty) gifts that management hands out etc. My understanding of the rule is pretty bad but I've been told it's because they can potentially make a case in court that they were treated as full employees and deserve the same benefits, protections etc.