Management turmoil at Osaka-based English-conversation school company Nova Corp. has led to the sudden closure of schools, complaints about tuition refund delays and other problems.
Of its about 900 schools nationwide, around 50 had closed as of the end of September. This month, at least another 50 schools will be unable to offer lessons due to the absence of teachers and are effectively closed.
Students at existing schools are having difficulty reserving lessons, while students who have canceled their lesson contracts are not sure when their tuitions will be refunded.
With its finances deteriorating, the company that once boasted 400,000 students nationwide is in turmoil.
On Monday, the General Union, which includes foreign Nova teachers as members, held an explanatory meeting in Osaka. About 200 students attended the event.
A 58-year-old female student of the Nova Sakai school in Sakai, Osaka Prefecture, which closed in mid-October, said: “I thought my school would be all right, but it closed abruptly. I didn’t know [the company’s] management was in such bad condition.”
According to a 52-year-old male student at the Tennoji main school, the school is open, but students can rarely take lessons due to the lack of foreign English teachers. The man bought points for lessons for 700,000 yen in advance and still has some remaining. “Students who can’t go anywhere else have been deserted,” he said angrily.
A 63-year-old woman who has studied at Nova for the last seven years, said: “Some teachers still teach us with enthusiasm. I hope the company will be able to keep them through changing the management.”
Delays in salary payments to employees and foreign teachers began in July, resulting in the loss of many teachers and making it impossible to regularly give lessons.
According to sources, about 50 schools in the Tokyo metropolitan area and the Kinki region had been closed as of the end of September.
In October, at least another 50 schools were unable to offer lessons due to the loss or absenteeism of teachers.
The situation has also affected public schools in Osaka.
The Osaka Municipal Board of Education decided on Tuesday to cancel a contract with Nova to dispatch assistant language teachers to 335 municipal primary, middle and high schools.
TozenAdmin
Labor body hopes to grill Nova chief on pay missteps
An Osaka labor standards watchdog wants to question the president of scandal-hit English-language school chain Nova Corp. over delayed wage payments, but meanwhile four executives of the firm have resigned because they can’t get ahold of their boss, Nova said Wednesday.
The Osaka Central Labor Standards Supervision Office has quizzed foreign teachers and other Nova employees about the delays, and wants to hear from President Nozomu Sahashi, suspecting a violation of the Labor Standards Law.
A union representing Nova’s foreign teachers said the firm has failed to pay wages to some 2,000 Japanese employees since July and to about 4,000 foreign teachers since September, and wages that were supposed to have been paid on Oct. 15 are on indefinite hold.
Meanwhile, three Nova auditors and the chain’s longest-serving director have submitted their resignations.
Meanwhile, three Nova auditors and the chain’s longest-serving director have submitted their resignations.
The four are believed to have resigned because they were unable to get in touch with Sahashi. Their departure could have a serious impact on management and Nova’s ability to disclose financial statements.
Nova shut down several schools after student enrollment declined sharply after the Ministry of Economy, Trade and Industry issued a partial business suspension order in June. The order was given to punish the school for running false advertisements about its services and refund policy.
Four NOVA executives quit, including founding board member
Four high-ranking employees of scandal-plagued NOVA Co. resigned Thursday, including an executive who had been with the English conversation school chain since its inception, company officials said.
Anders Lundqvist, who had been involved with NOVA since its foundation walked out on the beleaguered business Thursday, together with three auditors.
Reasons for the resignations were not announced, but it is believed that Lundqvist and the auditors were at odds with NOVA President Nozomu Sahashi’s plans to rebuild the struggling chain, which has been plagued in recent weeks by such events as labor troubles brought on by not paying teachers and forced closure of schools because it couldn’t pay rents.
NOVA plans to hold an emergency board meeting on Friday to discuss how it can move ahead.
http://mdn.mainichi.jp/national/news/20071025p2a00m0na020000c.html
Cash-strapped NOVA fails to honor contracts to public schools after teacher exodus
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, officials said.
By Monday, NOVA had cancelled its planned dispatch of English teachers to five municipal elementary schools and five municipal junior high schools at least once.
The education board is now considering canceling its contract with NOVA.
In the 2007 academic year, the municipal education board commissioned three English conversation school operators, including NOVA, to dispatch teachers to junior high schools and elementary schools under its jurisdiction, officials said.
NOVA is supposed to dispatch teachers to 79 junior high schools once or twice a week and to 286 elementary schools on several occasions a year.
However, NOVA, which has been in financial difficulty since some of its business activities were suspended in June by the government regulator over its illegal business practices, has failed to promptly pay wages to many of its teachers.
In response, 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.
http://mdn.mainichi.jp/national/news/20071024p2a00m0na022000c.html
Human rights survey stinks
Government effort riddled with bias, bad science
On Aug. 25, the Japanese government released findings from a Cabinet poll conducted every four years.
First, why is the government even asking whether non-Japanese deserve equal rights? Are human rights optional, a matter of opinion polls? And if a majority says foreigners deserve fewer rights, does that justify the current policy of resisting introducing laws against racial discrimination?
When a human rights survey from even the highest levels of government allows for the possibility of human rights being optional (or worse yet, justifiably deniable based on nationality), we have a deep and profound problem.
Labor standards office questions Nova staff to prepare for charges
OSAKA — Osaka Labor Standards Office could as early as Tuesday hear from Nova Co. teachers and staff to decide whether to press charges against the English conversation school giant that continues to be beset by problems, office officials said.
The office asked members of [Tokyo Nambu’s sister union] the General Union, which includes many Nova instructors, for help with the case on Monday.
Last week, the union urged the labor standards office to file a criminal complaint against Nova for breaking the Labor Standards Law.
As of Tuesday, Nova has not paid Japanese staff members due to receive remuneration on Sept. 27 or instructors who were supposed to get their wages on Oct. 15. General Union representatives said Nova President Nozomu Sahashi faxed a letter to employees saying that they would be paid on Thursday.
Also Monday, the General Union gave a briefing to Nova teachers, staff and students in Osaka about the troubles facing Nova, including its late payments, a spate of school closures and bitter contractual spats surrounding students who want to cancel contracts with the company.
About 90 people attended two briefing sessions for staff and teachers. Some 200 students turned up for a briefing in the afternoon. At the meeting, there was a proposal that students create an organization to deal with Nova on a collective basis.
http://mdn.mainichi.jp/national/news/20071023p2a00m0na003000c.html
Three scenarios for Nova Corp. amid snowballing fiscal troubles
Nova used to pay teachers their salaries on the 15th of each month. As of last Friday, however, many teachers had not been paid. Some teachers say they are still owed for September, too.
That led some teachers at Nova schools in Osaka and Tokyo to go on strike. Several of those schools decided to close their doors temporarily last week.
At the end of March, Nova had more than 3 billion yen in cash and deposits.
However, it has continued to bleed cash since then, doling out millions of yen in salaries, refunds and office rental payments.
“Nova is in a precarious day-to-day financial situation,” said one source at a banking institution. If its circumstances don’t improve quickly, Nova may end up suspending all operations completely.
http://www.asahi.com/english/Herald-asahi/TKY200710220056.html
Benesse Corp. bigwig bashes underling in meeting
An executive from correspondence education giant [and parent company of Berlitz and Simul] Benesse Corp. faces punishment after he punched a middle manager during a meeting last month, the company said.
The executive, a 53-year-old man whose name has not been released, has apologized to the lower-ranking manager who he hit.
But Benesse Corp. officials said that the executive will be punished strictly, including a possible demotion, within the end of the month because his behavior was not appropriate for a company that deals so much in education.
The executive at the center of the incident was in charge of overseeing Benesse’s businesses related to high school and university education.
http://mdn.mainichi.jp/national/news/20071022p2a00m0na013000c.html
School row traps Aussies
AROUND 2500 Australians working in Japan as English teachers could be left stranded if school operator Nova Corp goes under.
Union spokesman Katsuji Yamahara warned yesterday that in a worst-case scenario, the Australians would have to try for scarce new jobs or go home in despair. Already they are working without pay.
Mr Yamahara ? who is chairman of the General Union which represents Nova workers ? says the company has delayed paying salaries for 5000 Japanese workers and foreign teachers.
“The school has failed to pay Japanese workers’ salaries since July this year and foreign teachers working in Tokyo and Osaka regions since September,” he said.
The union has asked officials in Osaka to urge public prosecutors to build a criminal case against Nova Corp and its president Nozomu Sahashi in connection with the Labour Standard Law.
Nova is Japan’s largest language educator with 900 schools.
Its financial situation has greatly been damaged after the Economy, Trade and Industry Ministry ordered the company in June to suspend part of its operations for six months for violating industry laws.
The ministry blamed Nova for using fraudulent advertisements when soliciting students.
Officials also accused the company of lying about refunds of paid tuition in cases where such refunds had not been properly carried out.
The ministry told Nova not to sign long-term contracts.
Since then, the schools group has suffered a major decline in the number of new students.
The Australia Asia Centre for Education Exchange has already announced that it would stop placing teachers with Nova as of October 1.
According to a Nova spokesman, the operator was running 925 schools nationwide as of March this year.
The number of foreign teachers stood at 5054 then. But industry sources say the number of foreign instructors has fallen to 4500 including 2500 Australians.
By comparison, the number of Australians teaching in Japan under the government-run JET Programme stood at 316 in fiscal 2007.
Tristan Sime, a 37-year-old Australian who taught at Nova schools for seven years, said: “Brand-new Australians who recently came to Japan and have no Japanese language skills or other resources to find a new job had better go home if they are fired or the school goes bankrupt.”
He said it would be difficult for other language schools to hire new foreign teachers because the Nova problem had damaged the image of English language education.
Mr Sime criticised some of Nova’s rules as restrictive.
“No social contact with students has been allowed for Nova foreign teachers, even for coffee,” he said.
He said some of his friends teaching at Nova were fired after they attended parties for students and teachers held outside school hours.
http://www.news.com.au/couriermail/story/0,23739,22602956-953,00.html
Unions want Nova, president indicted over payroll delays
A labor union representing teachers at scandal-hit Nova Corp. submitted a petition Tuesday to the Osaka labor standards authority asking it to seek an indictment against the language school chain and President Nozomu Sahashi for breaching labor laws.
The General Union asked the Osaka Central Labor Standards Supervision Office ? an arm of the Health, Labor and Welfare Ministry ? to have prosecutors indict both Nova and Sahashi for delaying the payment of salaries to foreign teachers.
[Tokyo Nambu], a separate labor union formed by Nova teachers in the Tokyo metropolitan area filed a similar petition with the Shinjuku Labor Standards Supervision Office.
According to the General Union, wages for the school’s 4,000 or so foreign instructors are usually paid in the middle of the month. But the September payments were delayed, and the company has told instructors that the payments for October will be delayed until Friday.
According to the General Union, wages for the school’s 4,000 or so foreign instructors are usually paid in the middle of the month. But the September payments were delayed, and the company has told instructors that the payments for October will be delayed until Friday.
Nova has also failed to pay wages on time to about 2,000 Japanese employees over the past three months.
In late September, the union filed a request with labor authorities asking that Osaka-based Nova be ordered to pay the wages. The authorities have since recommended on a number of occasions that the company improve its labor standards practices.
Article 24 of the Labor Standards Law stipulates that companies must pay wages to employees at least once a month, on a fixed date.
Nova has been suffering from falling student enrollment and increasing contract cancellations after being ordered in June to partially suspend business for deceiving consumers in advertisements about its services.
The order, which crippled its ability to sign up long-term students, is making it increasingly difficult for Nova to pay wages and has prompted reports that it is closing several schools.