Ministry Slaps Down Nova

[Greji]

How many fuckin part-time english teachers lost its job?
I want to see how they shake their head.
BUAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAHHAHAHA

Another lovely example of J-execs of that company charged for cheating their J-customers. I suppose that's a job opening for you now Take, teaching English conversation. I want to see if your students will shake their head.
BUAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAHHAHAHA

[Mulboyne]

The morning's news on one channel featured a language school called Ecole de Paris which closed earlier this month. This closure was before the NOVA judgement but is getting more coverage now as that story has shone a spotlight on all schools. It seems that the senior executives, including a foreigner called Philip(pe?) Sinclair held a meeting recently to apologize to students. Deep bows and gomen nasais all round but it looks like students won't be getting their money back. I don't know anything about how Ecole de Paris conducted their business but they certainly didn't come off well in the news report.

NOVA may well yet survive in one form or another - whether that requires new money or new owners is not yet clear - but the recent reporting is likely to make things tough for smaller schools who pre-sell lessons because students will be less likely to lay out hard cash if they are unsure of a company's financial standing.

This might be good news in the longer term for any school offering a good service with a good existing base of clients but, in the short term, it's probably going to be harder for everyone to sign up new students

[dimwit]

I don't believe for a moment that NOVA is dead. It's too big and too important for recruiting teachers to Japan. My guess is that the ruling will be sparsely enfordced and even then, the market is so flooded that I doubt that there are that many students who haven't taken lessons with them at some time or other.

The disgrace of their business practices will be forgotten in about three month just as the numerous drug charges haven't done much to dent their image.

[Mulboyne]

The disgrace of their business practices will be forgotten in about three month just as the numerous drug charges haven't done much to dent their image.

I don't believe the government will turn a blind eye so easily on this matter. This issue is a question of how NOVA deals with its customers and the government has come down hard on on companies who are seemingly exploiting their customer base. Goodwill unit COMSN has been put out of business, the sarakin have sustained hefty losses, the life insurance industry is having to pay out substantial compensation for misrepresenting policies and failing to honour their contracts, there are many more product recalls than at any time in history. Some, like the one at confectioner Fujiya, have caused severe financial distress.

It is partly a question of politics: the economic recovery has not translated into a consumer recovery largely because wages have failed to rise with company profits. There is widespread talk of growing inequality in Japan and one way in which the government is trying to head off public disquiet is representing itself as the "defender of consumer interests". Companies may not be paying their employees but they are not getting such a free ride anymore on the way they treat their customers.

NOVA is too big to disappear. The other companies in the industry don't have the capacity to ramp up their operations fast enough to absorb NOVA's clients. NOVA does need rehabilitation, however. The media isn't very impressed with the "sincerity" of Sahashi's apologies so the company will probably need a partner with a better reputation to reassure potential customers and regain government support (they used to receive large subsidies as an educational institution). I don't know enough about their financial position to say whether they also need money but any potential partner is going to want to own a chunk of the business.

[kamome]

I don't believe the government will turn a blind eye so easily on this matter. This issue is a question of how NOVA deals with its customers and the government has come down hard on on companies who are seemingly exploiting their customer base. Goodwill unit COMSN has been put out of business, the sarakin have sustained hefty losses, the life insurance industry is having to pay out substantial compensation for misrepresenting policies and failing to honour their contracts, there are many more product recalls than at any time in history. Some, like the one at confectioner Fujiya, have caused severe financial distress.

It is partly a question of politics: the economic recovery has not translated into a consumer recovery largely because wages have failed to rise with company profits. There is widespread talk of growing inequality in Japan and one way in which the government is trying to head off public disquiet is representing itself as the "defender of consumer interests". Companies may not be paying their employees but they are not getting such a free ride anymore on the way they treat their customers.

NOVA is too big to disappear. The other companies in the industry don't have the capacity to ramp up their operations fast enough to absorb NOVA's clients. NOVA does need rehabilitation, however. The media isn't very impressed with the "sincerity" of Sahashi's apologies so the company will probably need a partner with a better reputation to reassure potential customers and regain government support (they used to receive large subsidies as an educational institution). I don't know enough about their financial position to say whether they also need money but any potential partner is going to want to own a chunk of the business.

Mulb, have you encountered any writings that show a trend in the government to expose shady business practices? This is great news and long overdue - sarakin, eikaiwa, real estate brokers/landlords have been exploiting the J-public for far too long. What's interesting in your post is that it seems the J-government isn't doing it out of a sense of morality but more to preserve harmony and the appearance of equality.

[Mulboyne]

Mulb, have you encountered any writings that show a trend in the government to expose shady business practices?

It would be pushing it to say that the government wants to shine a spotlight on dubious business practices. In almost all cases, they have responded to complaints from the public, especially when those complaints have escalated to court proceedings. I think you can make a case that the growth of the internet has made it easier for information to disseminate and for disaffected parties to find each other and collaborate. Here's an interesting piece from the Yomiuri's deputy economic news editor:

Comsn, Nova wrongdoing shows government's oversight role vital

A company providing visiting nursing care services and a chain of English conversation schools, the largest in their respective areas of business, recently received strict administrative punishments...Both measures effectively block the two companies' main source of revenue and are very strict--no different from demanding that the two firms withdraw from business...Both companies imposed strict sales quotas on employees and excessively prioritized sales over quality of service. Though public authorities had repeatedly urged the companies to correct the problems, Comsn evaded punishment every time penalties were threatened by submitting notices closing down the branches, and Nova neglected to review its procedures for terminating contracts with students. Nursing care and education are services that are worthless unless people continue to receive the benefits for a certain length of time. Thus there is a social responsibility to provide reliable services. This is the reason why the government assists nursing care and educational service providers with taxpayers' money. Did the two companies think the government would not order them to cease business as many people would be inconvenienced if they discontinued their service? The administrative punishments immediately threw the two companies' business into disarray, and it is rumored the firms will be sold. The situation is nothing but what they deserve.

The government has relaxed business regulations to encourage more private companies to enter new business fields, aiming to help service industries grow. More competition among private companies lowers the prices of services and improves the quality of the services. It results in more demand for services and industries are further vitalized. And, finally, the service industry sector becomes a new engine of the Japanese economy. Comsn's parent firm, Goodwill Group Inc., and Nova grew by benefiting from government policy. However, companies that aim to protect their market share by unlawful means must withdraw from their fields of business so other companies can freely enter them. This is because unlawful actions obstruct fair competition and prevent prices from falling and the quality of service from improving. The strict administrative punishments on Comsn and Nova was also a message from the government that companies in the service industry with high-level social missions, even the largest ones, cannot be exempted from fair competition rules. Previously in service industries, only the Fair Trade Commission and the Financial Services Agency had applied the rule that an unlawful action must immediately result in the company's withdrawal from business. Many other ministries and agencies had prioritized maintaining order in industry and dealt with serious unlawful behavior with lenient stopgap penalties or ambiguous administrative guidance.

The halfhearted attitude was taken not only out of consideration for companies, but also because of fears that consumers as service receivers might be inconvenienced or confused. Riding on the slogan of former Prime Minister Junichiro Koizumi--"What the private sector can do should be left to the private sector"--attempts have begun to offer work such as the management of water supply, ambulance services and the operation of prisons to private companies. If the government applies such strict rules and orders companies to withdraw from business for violating the rules, the government also needs to think again from the viewpoint of consumers about whether it is really appropriate to leave everything to the private sector.

[Mulboyne]

Nova Teachers Union press conference.

[Taro Toporific]

NOVA is too big to disappear. The other companies in the industry don't have the capacity to ramp up their operations fast enough to absorb NOVA's clients. NOVA does need rehabilitation, however. .

H.I.S. considers assisting Nova
japan today - Monday, July 2, 2007 at 13:14 EDT
TOKYO --Major travel agency H.I.S. Co is considering extending assistance to Nova Corp, a scandal-tainted operator of foreign language schools, in the form of a business tie-up or financial assistance, sources close to the matter said Monday. H.I.S. Chairman Hideo Sawada met with Nova President Nozomu Sahashi in late June in Tokyo to ask about Nova's financial conditions as he pondered a possible move to salvage Nova...more....

[Behan]

Wasn't HIS charging FGs more for some flights? Sawada and Sa(ru)hashi, peas in a pod?

They are the chrysanthemums that put the F in FG.

[IkemenTommy]

Wasn't HIS charging FGs more for some flights? Sawada and Sa(ru)hashi, peas in a pod?

They are the chrysanthemums that put the F in FG.

Fuck HIS. I get better rates with my AMEX travel, any day.

[Mulboyne]

More FGs needed at NOVA:

Kyodo via Japan Today: Nova submits improvement measures

English-language school operator Nova Corp has submitted to the Tokyo metropolitan government a report on measures to improve its business such as increasing the number of teachers and revising students' canceling procedures, Tokyo officials said Friday. The Tokyo government had urged Nova to improve its operations after the Ministry of Economy, Trade and Industry ordered the Osaka-based company in June to suspend part of its business for lying to consumers about its services and contract cancellation policy when soliciting students. According to the officials, Nova vowed to increase the number of teachers by 686 by October from 4,415 as of July, as students had difficulty making reservations for lessons, while the number of English-language schools has increased. Nova will also improve its midterm cancellation policy so that students canceling lessons will not face any disadvantages in receiving refunds, as some students had received less than expected in such refunds from lesson fees paid in advance. In the improved policy, Nova will adopt the unit price used at the time of the contract and will count expired lesson points when calculating refunds, the officials said.

[Mulboyne]

Kyodo via Japan Today: BNP Paribas acquires 11.85% stake in Nova

Major financial group BNP Paribas has acquired a 11.85% stake in Nova Corp, becoming the largest stakeholder in the embattled English-language school operator after the company's president. According to a report submitted by BNP Paribas to the Finance Ministry Wednesday, the Paris-based group acquired the stake for "investment purposes."

[Doctor Stop]

[Captain Japan]

NOVA looks to shut down schools amid financial crisis
Mainichi

Major English language teaching chain NOVA is considering shutting down a large number of schools, it emerged on Thursday.

NOVA's income from lesson fees has decreased since the Ministry of Economy, Trade and Industry issued the language school a partial business suspension order over its practices. Because of this, the school is apparently pushing for a turnaround, hoping to cut costs by trimming and merging unprofitable schools.

NOVA currently operates more than 900 schools, but problems with efficiency have emerged.

Officials close to the group said NOVA has already been trimming and merging schools, focusing on unprofitable schools with low student numbers, but in the future the chain will also apply the move to major schools in cities where rents are high and there is more than one school in the same area. As many as 100 schools could be affected.

The language school will reportedly make considerations for students, allowing them to take lessons at other nearby schools. (Mainichi)

[kusai Jijii]

Fingers crossed!

Going, Going...

[Behan]

Near where I live they opened up a lot of branches that ended up taking students from the older ones. It was like they were competing with themselves.
But I was surprised to hear that a branch like JR Inage in Chiba closed as it is a kaisoku stop on the Sobu-sen.
They seem to have stopped or at least cut way back on their TV commercials, too.
There are a lot of posts on LetsJapan.org about Nova's possible demise.

[unkosando]

There are obviously exceptions to the rule, but the vast majority of Nova teachers I've had the misfortune of meeting have been complete wastes of space who I'd rather not be equated with.

This is so true. I knew a lot of Nova teachers when I lived in Japan. I remember a bunch of them bragging about having purchased degrees from Thailand so they could work at Nova. (I don't think Nova scrutinizes as much as the other Eikaiwa companies.) I felt really sorry for the Japanese people who laying down serious cash to be taught by these Idiots.

[American Oyaji]

As an ex NOVA teacher, I rather resent that.

ALL of the teachers that I had the pleasure of working with were professional and decent people. Then again, I worked in Aomori. I think to work out in the inaka, you have to be settled mentally. Maybe they kept the idiots in the cities where they could keep an eye on them.

[kusai Jijii]

I "worked" at Nova on a working holiday visa 12 years ago, part time for 5 months. Im still in therapy. It was the biggest waste of 5 months of my life. I cringe to think about it. I met some ok people, and whilst I can see how a short stint there for some is a means to an end (i.e. visa, first job while you hit the ground, plenty of easy shags etc...) I can not for the life of me understand why ANYONE would continue "working" for the cunts for any length of time.

I know a few guys who have been there for literally "years and years". It is indescribable what it has done to their mental health. They are that far gone, it aint funny.

I will be popping the cork off the top of a tip top bottle of plonk the day I hear those fuckwads go under. And as for the "poor" students who are being taken for a ride...Who in their right mind, after all that has gone on, would ever part with a single yen to be tied up with that cowboy outfit?

Fuck Nova. its karma baby! yeah!

[eighty5er]

I remember a bunch of them bragging about having purchased degrees from Thailand so they could work at Nova. (I don't Nova scrutinizes as much as the other Eikaiwa companies.) I felt really sorry for the Japanese people who laying down serious cash to be taught by these Idiots.

Whoa, why did they buy degrees to work at Nova??

[unkosando]

As an ex NOVA teacher, I rather resent that.

ALL of the teachers that I had the pleasure of working with were professional and decent people. Then again, I worked in Aomori. I think to work out in the inaka, you have to be settled mentally. Maybe they kept the idiots in the cities where they could keep an eye on them.

I am not saying all of them... I am sure there are good people who work for Nova but the lot I ran into... Well there is no other way to put it... They were scum.

[ttjereth]

As an ex NOVA teacher, I rather resent that.

ALL of the teachers that I had the pleasure of working with were professional and decent people. Then again, I worked in Aomori. I think to work out in the inaka, you have to be settled mentally. Maybe they kept the idiots in the cities where they could keep an eye on them.

You'll note the "exceptions to the rule" bit in my original comment I hope.

I know a few people who worked at Nova who are okay people. I even know there are entire nova branches that aren't just filled to the brim with assholes.

The fact remains however that the vast majority still just don't tend to be very good people, backed up by the fact that most of the good people tend to leave fairly early on (I notice you said you were an "ex" nova teacher;)).

The vast majority of Nova teachers I have met have just been total pricks, including out in the boonies.

To the best of my knowledge, it's still fairly common for having worked at Nova to considered negatively by a lot of other Eikaiwa schools when considering applications.

[Iraira]

Ok, let's take this runaway train and let it roll into a full on derailment and spilling of toxic chemicals next to a nursery school....

What if (c'mon Jezus, Buddah, Mohammad, Bezelbub) NOVA closes shop completely? Initially, that's a lot of people out of jobs. Roppongi will suffer, as alcohol sales will plummet. J-girls, unable to attain enough Gaijin tubesteak will potentially return to the home grown variety....or fewer gaijin means more frisky females seeking gaijin per gaijin remaining after the NOVA demise......I like this latter concept. Kill the wabbit! Kill the wabbit!

[Behan]

Just waiting to sing:

The wabbit kicked the bucket! The wabbit kicked the bucket!

[FG Lurker]

What if (c'mon Jezus, Buddah, Mohammad, Bezelbub) NOVA closes shop completely?

I don't think NOVA will go under. They've already attracted some investment and certainly they will attract more if the terms get better (ie as they become more desperate for cash).

[canman]

I just think that the company is too big to go under. At least very quickly. They may wither away and die, but I think most likely they will need to be reincarnated. The name Nova is toxic these days, so I wouldn't be surprised to see them try to reinvent themselves. Even if it means jettisoning the Nova rabbit.

[Behan]

Iraira, you brought up a good image for this thread:

Kill the Wabbit! Kill the Wabbit!



[YT]rzhDHkdbLlA[/YT]

http://www.youtube.com/watch?v=rzhDHkdbLlA

[FG Lurker]

NOVA hit with group lawsuits over return of lesson fees
Mainichi Interactive, September 26, 2007

KYOTO -- Fourteen people have filed two group lawsuits against major English-language school NOVA in the Kyoto District Court, demanding money they say the school has failed to return to them.

The plaintiffs are demanding a combined 6.58 million yen from NOVA.

(Full Story)

If thousands of ex-Nova students band together into lawsuits like this it is going to cause major financial troubles for Nova.

I don't know how Nova calculated refunds, but I am guessing that it was something like this:

Plan Option A: 200 tickets @ 1500yen each (300,000yen total)
Plan Option B: 300 tickets @ 1200yen each (360,000yen total)

Student chooses plan B and proceeds to use 180 tickets. They then decide to cancel the contract and demand a refund.

The student has gained by following this route. They get the 300 lesson package price, but only had to commit to 200 lessons. I'm guessing that Nova calculated the lessons used at the higher price and refunded the balance.

180 x 1500 = 270,000yen.
360,000 - 270,000 = 90,000 refund.

Now, I don't *know* if this is what Nova was doing, but if they were it seems perfectly fair to me...

Does anyone know what Nova was doing?

[Mulboyne]

Part of the issue is the mis-selling and misrepresentation. Students were encouraged to buy tickets but found that the lesson slots they wanted were unavailable although they were promised otherwise. Some were told they had committed to signing up for lessons when they thought they had only registered interest. Some NOVA offices refused to recognize the contract cooling-off period where you have a the opportunity to reconsider and cancel.

Taking your example:

Plan Option A: 200 tickets @ 1500yen each (300,000yen total)
Plan Option B: 300 tickets @ 1200yen each (360,000yen total)

Student chooses plan B and proceeds to use 180 tickets. They then decide to cancel the contract and demand a refund.

The student has gained by following this route. They get the 300 lesson package price, but only had to commit to 200 lessons. I'm guessing that Nova calculated the lessons used at the higher price and refunded the balance.

180 x 1500 = 270,000yen.
360,000 - 270,000 = 90,000 refund.

I've also heard, but not confirmed, that the some offices may have done something like this: to calculate the refund they come up with a single lesson price "Plan X" which wasn't offered to the student. This values a lesson at, say, 2000 yen, in which case the student in your example gets no refund. If the student had taken more than 180 lessons then, in theory, a cancellation would mean owing NOVA money.

The reason I think something like this may have been happening is that the original Asahi article on the court ruling said this:

The Supreme Court effectively ruled that it is illegal, under any circumstance, for businesses to claim refunds that exceed the fees initially paid at the time of the contract.

[kusai Jijii]

Fuck the semantics. I just wanna see the CUNTS burn.
Die NOVA Die!
Cunts! Fuck...

Note to self: take valium and swig of happoshu.

Ahhhhh.

Ok. Now where were we?