Ministry Slaps Down Nova

[Midwinter]

As expected you were spouting bullshit -- it seems to be a habit of yours. Free tip: Put brain in gear before mouth.

NOVA accounted for a very large percentage of eikaiwa jobs in Japan. Even ignoring location it simply is not possible for all NOVA teachers to move to other jobs as there are not enough jobs available.

Get a fucking clue or go back to FULL lurker mode and shut the fuck up. Any idiot that works for a company like Nova when there are far better options out there deserves whatever they get. You bought up the subject of job placement, not me. You've got a real chip on your shoulder there buddy...

[Mulboyne]

Money put to good use.
http://www.asahi.com/national/update/1030/OSK200710300072.html

There are quite a few of those pictures online. Rather than being amazed by the opulence of Sahashi's office, I was left wondering how on earth it could have cost as much as 60 million yen. It looks like the interior has been designed by the same team behind the more well-equipped chains of manga kissaten.

[amdg]

Oh god! My eyes! That office is horrible!! That’s what happens when people like that get money. It’s a fucking tragedy.

[FG Lurker]

Get a fucking clue or go back to FULL lurker mode and shut the fuck up. Any idiot that works for a company like Nova when there are far better options out there deserves whatever they get. You bought up the subject of job placement, not me. You've got a real chip on your shoulder there buddy...

Are you mathematically inept? Suffering from IQ < shoe size? Your pea-brain is incapable of understanding anything that doesn't fit your opinions? I'm guessing all of the above, and probably more.

At least you're good for a laugh!

[FG Lurker]

Rather than being amazed by the opulence of Sahashi's office, I was left wondering how on earth it could have cost as much as 60 million yen. It looks like the interior has been designed by the same team behind behind the more well-equipped chains of manga kissaten.

Based on his other actions he probably got a good-sized chunk of that 60mil back as a kickback.

That and the law of diminishing returns. Tatami for example can be had very cheaply or can be insanely expensive for certain types. Same for just about everything else, and I'm guessing he chose the absolute best of everything.

[omae mona]

It looks like the interior has been designed by the same team behind behind the more well-equipped chains of manga kissaten.

I was thinking that it seemed a bit more love hotel-inspired.

[amdg]

I'm guessing he chose the absolute best of everything.

Probably, but can you imagine how the conversation must have gone ...

"I want the absolute BEST fake rose arch you can find to adorn the office doorway!" You hear me? Money is NO object! Now let's talk desks, I absolutely will not compromise here - nothing but 100 percent wood veneer is good enough, OK?"

[Mulboyne]

I was thinking that it seemed a bit more love hotel-inspired.

Looks like you are on the same page as the Japanese weeklies: that's exactly what they are saying.

[American Oyaji]

Midwinter, please take note:

Everyone except FGL has pretty much ignored what you said. That should be a clue to let you know how off base you are.

/back to ignoring you.

Looks like you are on the same page as the Japanese weeklies: that's exactly what they are saying.

This Sahashi cat seems to have kept living on the bubble after the bubble burst. What a dirty sphincter muscle.

[Midwinter]

Midwinter, please take note:

Everyone except FGL has pretty much ignored what you said. That should be a clue to let you know how off base you are.

/back to ignoring you.

Don't worry, I won't take offence to it. Also, I don't expect the mindless drones to start thinking for themselves and explore options outside the box. If you're happy being shat on all day by upper-management types, being taken for granted, and forced to follow some rules no matter how insane they might be, who am I to argue. It won't however, change my opinion that such people are idiots for tolerating it, but whatever...

[Iraira]

The bottom line is that many forces came into play at once and at one giant moment, NOVA went supernova. Whether they find some delusional folks to pony up major fundage to cover their asses, or start up with a new name doesn't change the fact that parts of Roppongi are hurtin' for business.

[Mulboyne]

Here's the final part of the Yomiuri series:

Nova's business model based on faulty premise

The dramatic collapse of Nova Corp., the nation's largest English-language school chain, has provoked mixed feelings among government officials, in part because it followed a decision by the Economy, Trade and Industry Ministry in June to punish the firm only several months ago. "I'd heard Nova's financial situation wasn't good, but I never expected it would fail just 4-1/2 months after the administrative punishment [imposed by the ministry]," a senior ministry official said. On Oct. 26, the day Nova filed for court protection, Economy, Trade and Industry Minister Akira Amari said: "Nova had a registration system that other English schools decided against introducing. But it had a fatal flaw." The system in question involved requiring students to purchase lesson points when they signed contracts of up to three years, which allowed them to take classes based on the number of points they bought. The more points a student bought in one go, the lower the cost per unit. But revisions to the Specified Commercial Transactions Law in 1999 introduced changes that would later contribute to Nova's undoing.

Prior to the changes, language schools were not covered by the law, meaning that some schools were not obliged to accept cancellations after lessons had started, except for in special circumstances such as illness or a job transfer, while some other schools had introduced expensive breakup fees for students cancelling contracts. Revision of the law allowed customers of aesthetic clinics and language schools to cancel contracts after lessons had started for any reason. Some senior executives at other language companies thought the changes would hurt Nova most, because it had been using lesson fees paid in advance to open more branches. But Nova's then President Nozomu Sahashi, 56, reportedly said at a meeting of a deliberative council of the then International Trade and Industry Ministry that was held before the revision, "Our management is as solid as a rock, no matter how the system changes." The senior executives of other schools looked at each other in complete confusion.

One of associations in the industry that language schools belong to had by then already voluntarily refrained from taking tuition fees in advance for contracts longer than a year. However, Nova continued the long-term contracts even after the revision. Sahashi was determined to continue the system because of the company's method of adjusting accounts at the time of a midterm cancellation. For example, even if a student paid tuition in advance on the understanding classes would cost 2,300 yen, Nova would calculate tuition as 5,000 yen per class for those lessons already taken if a contract was cancelled midterm, thus minimizing refunds. Following the 1999 change, the ministry issued an instruction that worked out in Nova's favor as it allowed high unit costs to be applied at the time of cancelation in cases when there was "a rational reason." Some students complained the refunds were too small, but Nova dismissed such claims by stating that the ministry had accepted its method.

However, things turned sour for Nova when the Supreme Court ruled Nova's settlement method was illegal on April 3. Sahashi argued in a statement submitted to the court: "If students started buying large numbers of points for the lower prices and could just cancel them whenever they wanted, our company would go bankrupt." But the court ignored his pleas. After the Economy, Trade and Ministry imposed a six-month ban on Nova soliciting for long-term contracts in June, there was a big jump in the number of students asking for their contracts to be cancelled. "The court ruling and the ministry order led students who had given up on canceling, and who weren't attending lessons, to take action," one Nova employee said. "It was like waking up a sleeping dog."

From April to June, the company had to refund 1.6 billion yen--more than the company had set aside for refunds for the entire year. Nova executives quickly realized they had little cash on hand. Now, about 300,000 students, who paid a total of about 40 billion yen in advance have been left out of pocket. When a company goes into liquidation, outstanding taxes and worker's salaries are prioritized over refunds, so it is likely that students will get nothing back. Sahashi had hoped to establish 1,700 branches around Japan--about twice what it achieved at its peak. But the capital for enlargement came from advanced payments from students. Nova was structured on the faulty premise that there would be an endlessly increasing supply of students. This assumption was based on shakier foundations than the ministry realized.

[Mulboyne]

The Yomiuri is also now reporting how one foreigner is trying to step up:
Rival school accepts unused Nova points

An Osaka-based English-language school chain this week began helping students who hold unused lesson points with Nova Corp., allowing them to redeem the points for lessons at their schools. Michael's English School in Nishi Ward, Osaka, hopes to expand its business by helping former students of language-school chain Nova Corp., which filed for court protection in October. It already has accepted 50 students, who will begin taking lessons from December. To redeem their Nova points, students are required to pay a 10,500 yen-enrollment fee and report to Michael's the number of unused points they hold. To avoid false reports, the school chain plans to ask the government for access to the students' points records.

"We know that Japanese bureaucracy takes a lot of time, so we'll begin the lessons [from December], and later we'll be able to corroborate with the government," Michael McCavish, president of Futura Marketing International, which owns and runs the school chain, told The Daily Yomiuri. However, should Nova refund lesson fees to a student who has already received lessons at Michael's English School using their Nova points, the student will be required to pay lesson fees retrospectively. McCavish also described plans to dispatch Michael's English School teachers to middle schools previously covered by Nova.

The school chain, which operates four schools in Osaka Prefecture, expects to be able to accept more students after opening new schools in Osaka, Kobe and Kyoto. "[We're accepting the students] because I want to help these people, but also for business reasons, too," McCavish said. Earlier this year, the school chain gave aid to 43 students of a small-sized language school that went bankrupt, allowing them to redeem unused points under a similar system. More than 90 percent continued to study at Michael's English School after redeeming all their points from the other school. McCavish therefore hopes that helping former Nova students will boost his school chain's performance in the mid- and long-term.

[FG Lurker]

mindless drone

That about sums it up!

[Captain Japan]

I wonder how they got the bunny suit out of the office...

Nova teachers offer classes for food
Japan Times

A union representing teachers of Nova Corp. said Thursday its ranks will soon launch a "Lesson-for-Food" campaign in which they will offer free classes to students of the failed foreign-language school chain in exchange for basic food or meals.

The union said in Tokyo that it has also started accepting donations to help Nova teachers who find themselves destitute and face being evicted from their homes, said Bob Tench, president of the Nova branch of the National Union of General Workers Tokyo Nambu.

"Why are we doing this? People have no money . . . they have no food," Tench told reporters at the Foreign Correspondents' Club of Japan. "This is a crisis that is rapidly turning into a tragedy."...more...

I think this issue is officially ridiculous. And I don't think offering lessons for food is a good move in the long term as that is a dangerous precedent to be setting as far as wages.

[American Oyaji]

Regardless of what anyone thinks, this really is sad. It does not matter if one has money in the bank or not.

Imagine, you have a job that pays a reasonable rate and you don't mind doing it and you're in a country that you absolutely adore. Then the rug gets pulled out from under you. No job. Evicted because your apartment was paid by you company. (maybe a family with kids)

All of the sudden, life aint so certain anymore. Even if one were to run back to their country of origin with money saved up, there is no job there waiting and there is no safety net. No guarantee.

And no matter where one goes, there are others there competing for the same job and salary in the same situation.

This is an employers market and the girl that gives up the booty fastest will get the job. As for the dudes...better find a cougar.

[Captain Japan]

Imagine, you have a job that pays a reasonable rate and you don't mind doing it and you're in a country that you absolutely adore. Then the rug gets pulled out from under you. No job. Evicted because your apartment was paid by you company. (maybe a family with kids)

I think the point many are trying to make is that this could happen to _any_ FG coming to Japan to work for _any_ Japanese company. So why are employees of Nova deserving of special treatment?

I realize that the market for English teachers could be saturated at this point. And therefore finding another job might take a fair bit of time. But frankly would it really take more than 2 or 3 weeks? And further, couldn't these teachers continue to fight for back wages while they are employed at another school?

[American Oyaji]

Hey Cap'n.

Depending on where they live, they could be up excrement tributary.

Any job in a storm, sure, but how many do NOT have J-language skills. That's a killler right there. Those same ones probably do not have any money saved. That's a pinch in nards. Perhaps they got evicted? Full frontal punt in the jewels!

Why are they deserving of special treatment? The J government precipitated this. True it was NOVA's business practices that were shady, however the govt did not take an adequate look at the overall situation. 2. Different situation in that the teachers rent is paid from salaries and salaries and rent both aint paid. Even if one DID have a cushion of cash, rent and food would put a dent in it. That's not even throwing in the issue of racist fudosan denying gaijin rent.

All of the sudden Japan has self created refugees. Not a lot, but refugees nonetheless.

[Captain Japan]

Any job in a storm, sure, but how many do NOT have J-language skills. That's a killler right there. Those same ones probably do not have any money saved. That's a pinch in nards. Perhaps they got evicted? Full frontal punt in the jewels!

Yes, I am sure there are exceptions where the possibilities seem quite dire. As Mulboyne pointed out already, those who need to renew their visa are in a bind.

And I would suspect that, yes, the housing situation is a problem since it seems that Nova had the leasing contracts in their name. But of the 4,000 (or so) teachers, how many do you _really_ think are in serious trouble (i.e. no food)? I just have a feeling it isn't that many.

As to the government having caused this, I think it was Nova's questionable point system (pyramid/ponzi scheme, whatever) with regard to reserving lessons that was the problem. The gov just finally listened to student's complaints and did something about it. As far as bankrupted j-companies, I don't think this is unusual. Think about Meathope.

[amdg]

As to the government having caused this, I think it was Nova's questionable point system (pyramid/ponzi scheme, whatever) with regard to reserving lessons that was the problem. The gov just finally listened to student's complaints and did something about it. As far as bankrupted j-companies, I don't think this is unusual. Think about Meathope.

Seems to be a combination of the two - NOVA's bad business practices which attracted the government notice and the government responds by making NOVA cough up money it can't afford to, AND placing a 6-month ban on signing up new customers. It was a death sentence.

[canman]

I can't agree with you. The work for food, is so low, and it makes all of us foreigners look like we cannot even take care of ourselves. I hate the way that Japanese people baby me, and applaud when I can use chopsticks. But this will make things even worse.
I had a similar thing happen to me, when I was teaching for Geos ages ago. There was another Canadian teacher working with me, but she left(was pushed out)and due to downsizing, I had to take over her classes. One class was a bunch of housewives. Three out of four were company presidents wives. One day after starting to teach, they invited me out to lunch. I accepted, and had a great time. Near the end of the lunch, one of the ladies took me aside and asked me how was my financial situation. I told her I was doing ok. She then reported that the other teacher had been treated so badly by the company and that she had hardly any money to pay for her rent, and food. So the housewives were giving her money each month to help out. The lying bitch was stealing and lying to them. I politely told the women that I was making Y400 000 a month at the time and was doing fine thank you very much. Now I know that they were only trying to be nice, but it really made me feel small, that they thought that all foreigners were in the same position. And I feel its the same with this Nova work for food idea. Japanese will paint us all with the same brush.
One other thing that bothers me a little is that an Osaka company is trying to help or take over some part of Nova's business. And what is that school's name? Michael's English school. What is the name of my small but enjoyable eikawa, none other than Michael's English school. I hope my students don't think I'm going Nova on them.

[amdg]

One other thing that bothers me a little is that an Osaka company is trying to help or take over some part of Nova's business. And what is that school's name? Michael's English school. What is the name of my small but enjoyable eikawa, none other than Michael's English school. I hope my students don't think I'm going Nova on them.

Canman - quick - get the trademark rights and then force them to license it back from you!

[canman]

[amdg]

I don't know what that is, but I do know that every accountant I know seems to be telling companies that if they employ foreigners they better get all their paperwork in order quick smart. There seems to have been some circular passed down from on high recently about the employers obligations to check paperwork when employing foreigners.

[dimwit]

[ttjereth]

I'd still really like some more specific information on WHY these people have no money. I'm assuming that up until Nova stopped paying wages they were making the same as the majority of Nova teachers, so how is it that they managed to not save ANY of it.

I don't think they will have an easy time finding another job, as I've said, I've already seen some ripple effect where another school (the one my wife attends) is hiring ex-Nova teachers at lower wages, but even at lower wages there are only so many positions at the school, but seriously coming to the country without the skills (language and otherwise) to be able to move into any other job is a huge gamble, and a lot of these people are finding themselves on the losing end of that gamble.

It's not a matter of kicking people when they're down, it's a matter of expecting these people to finally wake up and realize they must now live in the adult world where they can't expect everyone else to take care of them, whether it be Nova, the J government, or perfect strangers in the case of people asking for DONATIONS.

It's insane, the vast majority of these people are not even in that dire of a situation. There are people who honestly have nothing to eat and are forced to live in squalor and yet these jackasses, the majority of whom have no one to blame for their situation but themselves (but how many of them admit that, or will learn from it I wonder), are actually begging for money and food, when the worst that most of them face is having to go home when they don't want to.

Where are the sites/groups asking for donations for or the businesses offering special support to the Japanese employees? For that matter where are the Japanese ex-employees? My guess, out finding new jobs instead of spending their time decrying the injustice of their situation.

[ttjereth]

[ttjereth]

I wonder how they got the bunny suit out of the office...

Nova teachers offer classes for food
Japan Times

I think this issue is officially ridiculous. And I don't think offering lessons for food is a good move in the long term as that is a dangerous precedent to be setting as far as wages.

Besides my curiousity about what drove her to wear the bunny custume, or what effect she thought that would achieve, I'm really fascinated by the idea at the end of the article that people will still be willing to go teach at Nova when it restarts, and that there are people who are just waiting for it to restart business.

[james]

Get a fucking clue or go back to FULL lurker mode and shut the fuck up. Any idiot that works for a company like Nova when there are far better options out there deserves whatever they get. You bought up the subject of job placement, not me. You've got a real chip on your shoulder there buddy...

the only chip i see is yours. that and a bad case of verbal diarrhea compounded with mental constipation.

[canman]

The email was from the university, stating that the orders had come from Mombusho, that the university check all foreign workers teaching at the school. As for my status, I have a permanent resident visa. I've had it since 2002.