Ministry Slaps Down Nova

[Taro Toporific]

[floatr][/floatr]

Cash-strapped NOVA fails to honor contracts to public schools after teacher exodus
MDN-Mainichi, 2007 Oct 24, OSAKA --Scandal-hit major English school operator NOVA failed to dispatch English teachers to local public schools after many teachers quit or took leave because they didn't get paid...a large number of NOVA teachers have quit their jobs or taken days off without prior notice. A shortage of teachers has forced NOVA to cancel the dispatch of some teachers to Osaka public schools, education board officials said...more...

[canman]

I guess this is really the end of Nova. But what I'm wondering is what will happen to the 4000 native English teachers that are going to be left high and dry. Will their visas be canceled and forced to leave Japan. Will they swamp Aeon and Geos hoping for jobs. Will some local gov'ts hire them to replace the teachers they were supposed to get from Nova. I know for most Japanese this isn't a big issue, but for the foreign community, I think this will have a big impact. Also what will happen to Gas Panic, will they be next to go under?

[GomiGirl]

I was out in Fussa today and the Nova outside the station was closed and locked up. There were no lights on. I was in a hurry otherwise I would have taken a photo of the notice at the door.

[oyajikun]

I was out in Fussa today and the Nova outside the station was closed and locked up. There were no lights on. I was in a hurry otherwise I would have taken a photo of the notice at the door.

What were you doing in Fussa??

[GomiGirl]

What were you doing in Fussa??

Showing property to a guy and his family from the base. (Somehow I have added Real Estate Agent to my job title)

[oyajikun]

Showing property to a guy and his family from the base. (Somehow I have added Real Estate Agent to my job title)

Cool, I only asked because I'm getting homesick. Fussa is an unbelievably fun place to live.

[ttjereth]

I guess this is really the end of Nova. But what I'm wondering is what will happen to the 4000 native English teachers that are going to be left high and dry. Will their visas be canceled and forced to leave Japan. Will they swamp Aeon and Geos hoping for jobs. Will some local gov'ts hire them to replace the teachers they were supposed to get from Nova. I know for most Japanese this isn't a big issue, but for the foreign community, I think this will have a big impact. Also what will happen to Gas Panic, will they be next to go under?

I mentioned earlier in this thread that there seems to be some outflow to other schools, but recently we have heard through one of the teacher's at the eikaiwa school my wife works at that the school now has way more applicants than teaching positions and has begun laying off teachers and replacing them with ex-nova teachers at much lower salaries, so this might have a big effect on the eikaiwa industry in general.

Not sure about the "foreign community" in general though, just the segment of it that happens to earn their pay teaching English.

[Iraira]

I mentioned earlier in this thread that there seems to be some outflow to other schools, but recently we have heard through one of the teacher's at the eikaiwa school my wife works at that the school now has way more applicants than teaching positions and has begun laying off teachers and replacing them with ex-nova teachers at much lower salaries, so this might have a big effect on the eikaiwa industry in general.

Not sure about the "foreign community" in general though, just the segment of it that happens to earn their pay teaching English.

If the above is true, the vultures are out and picking at the NOVA corpse. Hard to imagine that the basic monthly salary for eikaiwa could drop lower. Desperate times call for the desperate to get fucked over even more.

[Taro Toporific]

[color="Red"]BANKRUPT![/color]---(Actually, it's a good thing because it will make it easier for f'ed teachers collect back salary and unemployment benefits.)


[SIZE="3"]Nova applies for court protection from creditors; president missing, 4 execs resign[/SIZE]
japan today -Friday, October 26, 2007 at 08:31 EDT
OSAKA --Japan's largest language school chain, Nova Corp, filed for court protection from creditors Friday under the Corporate Rehabilitation Law as the scandal-tainted company gave up on trying to turn itself around....more...

[American Oyaji]

I'm actually sad at this news because I have friends that still worked for NOVA.

Up north we never had a problem with getting paid and most of us were on shakaihoken because we were married to Jgals. All of us guys were lifers in Japan we thought. We never bullied, we always met our sales goals and we generally had a fun time of it. Nearly everyone used all their lessons.

I saw that school grow from 20 to 700 students. I was the second full time teacher hired on at that branch. We had six classrooms and at first it was really empty and then we were full. It was a lot of fun and now it is over and I am sad. I know some have bad memories of NOVA, but mine are golden.

[amdg]

OSAKA -- Japan's largest language school chain, Nova Corp, filed for court protection from creditors Friday under the Corporate Rehabilitation Law as the scandal-tainted company gave up on trying to turn itself around

Is this the same thing as filing for bankruptcy, or something slightly different?

[FG Lurker]

Is this the same thing as filing for bankruptcy, or something slightly different?

It is similar to (but not the same) Chapter 11 bankruptcy in the US.

[Taro Toporific]

It is similar to (but not the same) Chapter 11 bankruptcy in the US.

That difference being in Japan employees have as high as priority for being paid as secured creditors with collateral.
Unsecured creditors such as stockholders are waaaay down food chain, and will have to wait for each priority level must be paid in full before the next lowest priority level may receive payment.

[Mike Oxlong]

Where do students with large amounts of unused tickets fall in food chain?

[hodensaft]

My understanding (which could be off) is that this is temporary protection from creditors while they attempt "restructuring." They have 10 days (not sure if that's business days or calendar days) from the declaration to find a financial backer, otherwise they have to officially declare bankruptcy.

[kusai Jijii]

I know that some will call me a complete arsehole for this, but as far as the Nova students are concerned, to be completely honest, who gives a fuck? And before you jump down my throat, think about it. Take a look at the add campaigns Nova ran. Look at what they were "selling". Everytime I saw a Nova add, I cringed. This objectifying of Gaijin and the whole us/them crap.
Besides that, there is the issue of just plain value for money. Of course there has always been a huge demand for English lessons here, but anyone with at least half a brain would not even entertain the idea of paying for tuition at Nova. Especially those idiots who sent their children to Nova Kids. I mean, come the fuck on.

I do feel sorry for those that lost their jobs - especially those with families to support. When you think about it, the hardest hit will most likely be the J-Staff. They'll be lining up at Hello Work on Monday, and what the fuck are they gunna put on their resumes? But for the vast majority of gaijin teachers there, I'd say - even though some may not realize it now - that finishing Nova is one of the best things that ever happened to them in Japan. Some will no doult leave the country - before their career tradjectories are well and truely fucked, and others will carve out a new and better existence for themselves in Japan. They'll find jobs that at least offer basic benefits. Some paid vacation once in a while. And the opportunity to use the office telephone without having to ask some idiotic bimbo 'manager' if it is ok to do so. And if they dont find jobs like that, then sorry for asking, but why the fuck stay?

As far as the flow on effect goes, I actually think it will, in the long run, be better for teachers here. For example, BoEs might start considering about the merits of direct hires over dispach teachers. Fewer newbies will be stepping off the boat, at least in the short term.The market is still there. Other jobs will be created.

I spoke to a mate the other day. he had been working for those cunts for almost 15 years! I said to him "You'll be right." He said "I know, I needed this to happen." he was right.

Just my 2 yens worth. Fire away.

[ttjereth]

BANKRUPT!---(Actually, it's a good thing because it will make it easier for f'ed teachers collect back salary and unemployment benefits.)

Wasn't one of the recent problems brought up with Nova that they didn't have their employees pay into the various insurance schemes, including unemployment insurance (Koyou Hoken) which you aren't automatically enrolled in even if you enroll for shakai hoken?

[ttjereth]

I know that some will call me a complete arsehole for this, but as far as the Nova students are concerned, to be completely honest, who gives a fuck? And before you jump down my throat, think about it. Take a look at the add campaigns Nova ran. Look at what they were "selling". Everytime I saw a Nova add, I cringed. This objectifying of Gaijin and the whole us/them crap.

I do feel sorry for those that lost their jobs - especially those with families to support. When you think about it, the hardest hit will most likely be the J-Staff. They'll be lining up at Hello Work on Monday, and what the fuck are they gunna put on their resumes? But for the vast majority of gaijin teachers there, I'd say - even though some may not realize it now - that finishing Nova is one of the best things that ever happened to them in Japan. Some will no doult leave the country - before their career tradjectories are well and truely fucked, and others will carve out a new and better existence for themselves in Japan. They'll find jobs that at least offer basic benefits. Some paid vacation once in a while. And the opportunity to use the office telephone without having to ask some idiotic bimbo 'manager' if it is ok to do so. And if they dont find jobs like that, then sorry for asking, but why the fuck stay?

As far as the flow on effect goes, I actually think it will, in the long run, be better for teachers here. For example, BoEs might start considering about the merits of direct hires over dispach teachers. Fewer newbies will be stepping off the boat, at least in the short term.The market is still there. Other jobs will be created.

I won't call you an asshole , but I have to say honestly that if you are going to blame the students for the whole "gaijin on sale" thing, you also have to blame the people who worked there and promoted it (including the foreign teachers, many of whom were well aware and fine with the fact that students were getting ripped off).

Also, other than the upper echelons, I doubt the Japanese employees will be terribly hurt, since the majority of them seemed to be freeters anyway. I doubt (hope maybe?) that there were that many Japanese employees aiming to make a career out of Nova.

Also also, based on first hand experience, I'd say the vast majority of BOEs who outsource their English teachers aren't motivated primarily by cost (in some cases they end up spending more money on the outsourcing), but by not having to deal directly with/handle the teachers, which many BOEs and BOE employees consider to be much more trouble than it's worth.

[kusai Jijii]

I won't call you an asshole , but I have to say honestly that if you are going to blame the students for the whole "gaijin on sale" thing, you also have to blame the people who worked there and promoted it (including the foreign teachers, many of whom were well aware and fine with the fact that students were getting ripped off).

Also, other than the upper echelons, I doubt the Japanese employees will be terribly hurt, since the majority of them seemed to be freeters anyway. I doubt (hope maybe?) that there were that many Japanese employees aiming to make a career out of Nova.

Also also, based on first hand experience, I'd say the vast majority of BOEs who outsource their English teachers aren't motivated primarily by cost (in some cases they end up spending more money on the outsourcing), but by not having to deal directly with/handle the teachers, which many BOEs and BOE employees consider to be much more trouble than it's worth.

Completely agree with your three points.
K.J.

[canman]

I was watching NHK the other day, and they interviewed this British teacher about his plight, about having no money, and now no job, and how he had to borrow money from his friends with only Y3000 in his bank account. When asked how he would go home, he said he didn't know, maybe he would row a boat home. Ha ha. But what I would like to know is what would these people have done if they had to fly home for an emergency, like a death in the family. I was talking to a Nova teacher in my city who said they got paid up until October 15th. Now it may be different in different places, but for some people to have no money in the bank seems a little irresponsible to me.
Luckily Quantas and BA have offered to help the teachers get home, but I think in the end this is a personal situation.
Also on the same NHK report the presenter said that he felt the real victims were the students. IF you look at the Lets Japan site, there are a bunch of people going ape shit on this guy. How could he say the students are the victims, they aren't out of a job having to eat sock soup etc. But what can the presenter say. He's working for NHK.

[Greji]

How could he say the students are the victims, they aren't out of a job having to eat sock soup etc.

Quite easy!

Student=Waga J-people
Teacher=FG

Duh.....

[Mulboyne]

In most countries where a company collapses because of a scandal, the customers get much more sympathy than the employees. There may be an occasional concern for pensioners in a case where a company has a solid history ruined by a few years of excess but, by and large, there is always a sense that employees bear some of the responsibility for their plight because they ought to have had a better idea of what was going on than anyone. Think of Enron, Worldcom, Barings and most US airlines.

In Japan, that is especially true. NHK will apologize if one of their staff is caught shoplifting or driving drunk, even though they are individual misdemeanours which have nothing to do with the company, because they take responsibility for that person as a member of their group. The flipside is that employees take responsibility for the company. The foreign teachers at NOVA are in a rotten position but they won't be seen as serious victims by the Japanese public any more than employees of Yamaichi Securities, Long Term Credit Bank, Livedoor or Meat Hope.

NOVA's students might not get their money back but there must be a reasonable number among them who will still want to learn English. If I was an unemployed NOVA teacher, I would think this would be one of my best chances to set up in business on my own. If you have no money at all in the bank then this isn't an option but I would consider approaching some disaffected students and offering to teach them for free in this period. You could build up a lot of goodwill over three weeks or so which would give you a chance to work out what teaching you could do and what students you could handle. As far as a venue is concerned, Some local institutions would probably be sympathetic if you asked if they could lend you a room to help some of these students because the NOVA story is all over the news.

The alternatives are to wait for a corporate rescue, find another job or leave the country. There are lots of names being bandied around at the moment - Aeon, Marui, Bennesse, H.I.S, Rakuten, and Yahoo Japan among them - but it is unclear what the administrators are in a position to sell. In the best case, a new owner could assume all outstanding liabilities which would mean paying all back salaries, rents and refunds but there's no guarantee that will happen.

[Charles]

I particularly enjoyed this post at Japan[SIZE="1"]al[/SIZE] Probe. But I can say no more, lest I be accused of taunting ozzies again.

[Greji]

I particularly enjoyed this post at Japan[SIZE="1"]al[/SIZE] Probe. But I can say no more, lest I be accused of taunting ozzies again.

"Taunting ozzies"? Why Charles, where ever could they possibly get that notion?

[American Oyaji]

I particularly enjoyed this post at Japan[SIZE="1"]al[/SIZE] Probe. But I can say no more, lest I be accused of taunting ozzies again.

You should hope to never fall into a similar circumstance. It's not a good place to be and anyone that can find any joy in the misery of another in that circumstance is a complete and unrepentant asshole.

I've given you the benefit of doubt on a lot of stuff and even defended you.
You're beyond human help.

God help you.

[Charles]

"Taunting ozzies"? Why Charles, where ever could they possibly get that notion?

Due to restrictions by the FG Moderator Pro-oz Faction, I am currently prohibited from taunting ozzies, no matter how much they deserve it.

[Charles]

You should hope to never fall into a similar circumstance. It's not a good place to be and anyone that can find any joy in the misery of another in that circumstance is a complete and unrepentant asshole.

Hey, I said nothing whatsoever about the story. I don't find amusement in hundreds of people out of work. I just thought it was interesting hearing the mostly useless reactions of the usual government bureaucrats. Private industry (i.e. Quantas) seems to have the only useful response.

[FG Lurker]

Hey, I said nothing whatsoever about the story. I don't find amusement in hundreds of people out of work. I just thought it was interesting hearing the mostly useless reactions of the usual government bureaucrats. Private industry (i.e. Quantas) seems to have the only useful response.

I note that your reaction has been even less useful than the "usual government bureaucrats". I can't say that I am surprised by this however.

[omae mona]

In most countries where a company collapses because of a scandal, the customers get much more sympathy than the employees.

I think there's also something to be said, in this case, about the raw numbers. If I heard the morning news correctly (it was pre-coffee, so I'm not sure), the amount of money customers lost is staggering. It sounds like 40 billion yen of pre-paid lesson fees are up in the air now, for about 400,000 students. So on average, students lost 100,000 yen (under the assumption they aren't getting anything back). I saw some posts from irate 2ch-ers who claimed to have lost 10 times that. I am starting to think Nova was just as much in the banking business as the eikaiwa business.

[ttjereth]

Several posts addressing the same issues, so rather than repeat the same opinions at each one, I just decided to make a new post

<Rant>
I don't understand the idea behind feeling sorry for people who have found themselves with "only 3000 yen in the bank" or in similar circumstances.

Seriously, what kind of fuckhead do you have to be to only have 3000 yen in the bank while living in a foreign country and working for a company that has been rumored to be going under for MONTHS now, and was never really the best work situation in the first place?

I don't understand how they could have gotten themselves into that situation other than plain old irresponsiblity. My bet is that the majority of the people in this situation are those who went out clubbing all the time, or blew their money on other frivilous crap without saving anything at all.

When I lived in the boondocks two of the English teachers in the town I lived in were always in the situation where they had no money by the end of the month and they made a good 10man or more a month than the average Nova teacher.

I'm not a financial genius or anything, and I have serious problems with impulse control, but I have ALWAYS managed to have an emergency fund in the bank, just in case something happened, even when I first moved to Tokyo and was working teaching English for 23 man a month.

And this goes double for the ones who have families. Shit happens, and their are plent of things that can put you in a bad circumstance, but if these fuckers had the money to buy a computer and the time to post on the web about their terrible situation, they sure as hell had money they could have better spent ensuring they have more than 3000 yen in the bank and time they should be using out busting their asses looking for another job.

I only have a wife, not even any kids to think about, and I would sell every personal belonging I have, and forego any semblance of a personal life (which I did while getting my translation career up and running) before I risked her well-being by having no savings while working at a company that never offered any prospects for promotion and sketchy job security at the best of times.
</Rant>