Gaba teachers challenge ‘contractor’ status

Union fears employment model could mark first step on slippery slope for eikawa firms

Long accustomed to being ignored, being forgotten proved too much to take for unionized teachers at Gaba language school. On Oct. 4, the General Union registered an official complaint and request for an investigation with the Ministry of Finance’s Securities and Exchange Surveillance Commission (SESC).

The union accuses Gaba Corp. of lying in its 2009 financial report filed in March with the Tokyo Stock Exchange, which states that there is no union at Gaba and that labor-management relations were “smooth and harmonious.”

The G.U. argues it has an established Gaba Branch. Its complaint also points out that the Osaka Labor Commission ruled in December 2009 that it considered earlier negotiations held between the union and Gaba to represent collective bargaining.

The union also charges that the financial statement’s description of Gaba instructors as independent contractors rather than employees is disingenuous. The complaint points out that the Osaka commission also acknowledged Gaba’s instructors as employees under trade union law last December, and that the firm’s failure to mention that fact was misleading.

The SESC complaint is tied to a larger struggle for union recognition and employee rights at Gaba.

Instructors first formed a union in September 2007 and, according to union members, met with company representatives for talks. However, managers always refused to enter into serious negotiations, arguing the instructors were not employees and, as itaku — independent contractors — weren’t covered by Japanese labor laws.

Determining who qualifies as an employee and who can be classed as an independent contractor isn’t always clear. However, the method in which workers are scheduled and their place of work are important considerations.

“The company must be very careful it’s not treating them as employees,” says [Christopher] Gunson [an international transaction attorney]. “Even having someone in an office and working with an employee is risky.”

Gaba instructors are not alone in their fight for recognition as regular employees. According to journalist Naoki Kazama’s book “Koyo Yukai” (“Employment Meltdown”), there are no official statistics for the number of independent contractors working in Japan, but estimates range from 500,000 to 2 million workers.

Japan’s Statistics Bureau’s annual Labor Force Survey shows the number of nonregular workers has increased steadily since 1999, after the Japanese government started relaxing regulations to make it easier for companies to hire workers outside their regular employment system. In 1999, 25.6 percent of Japan’s labor force was classified as nonregular. By 2009 the figure had increased to 33.7 percent.

Employing instructors as independent contractors allows Gaba to reduce labor costs.

Instructors receive no paid sick days or vacation, no pay for training, no overtime pay, and there’s no limit on the number of unpaid overtime hours that can be worked. The company also avoids enrolling its instructors in unemployment insurance, the national health insurance and pension schemes, and workers’ compensation. It also fails to pay a commuting allowance to instructors.

The instructors, working on six-month contracts, also lack job security. Employment as independent contractors means Gaba can dismiss any teacher, with or without cause, simply by not renewing their contract.

http://search.japantimes.co.jp/cgi-bin/fl20101019zg.html

50 Geos branches will be renamed

Nagoya-based investment fund Inayoshi Capital Partners said Thursday that about 50 of its 167 Geos foreign-language school branches will be renamed Nova X Geos after November.

ICP also said it will close down about 20 Geos branches whose business areas are overlapping with those of Nova.

The company said students of those schools will be relocated to the nearby Nova schools or receive lessons via Nova’s unique video-phone system.

Subsidiary G.education Co. “made a comprehensive judgment” on the chain’s operations, ICP spokeswoman Namiko Kameyama said.

G.communication took over the operations of Geos six months ago, after the chain filed for bankruptcy with net debts of ¥7.5 billion.

The corporation purchased Nova in 2007 after that chain went bankrupt.

http://search.japantimes.co.jp/cgi-bin/nn20101015a9.html

Retooled English school chains set to launch Nova x Geos brand

Nova x Geos, a new English conversation school brand integrating branches from the Nova and Geos chains, is scheduled to be established on Nov. 1, according to the chains’ parent firm.

Masaki Inayoshi, chairman of investment company Inayoshi Capital Partners, said Wednesday that about 50 of Geos’ 167 branches nationwide would adopt the new brand and start using Nova curriculums.

The Geos branches involved are located in neighborhoods where there is no competing Nova branch.

Inayoshi Capital said it intends to close about 20 Geos branches that do compete head-to-head with Nova branches, and also plans to integrate another 20 Geos branches with cram schools.

http://www.yomiuri.co.jp/dy/business/T101014003658.htm

Work starts on Nike-sponsored park

Full-scale construction work finally began Tuesday at a controversial Nike-sponsored park in Shibuya Ward, Tokyo, after a delay of nearly one year due to problems involving the relocation of homeless people and protests against leasing public space to a private business.

Prior to the showdown, officials accompanied by police last month built fences around the park, tore out the tents of homeless people and threw out their belongings.

Apart from the homeless, representatives of the Coalition to Protect Miyashita Park From Becoming Nike Park say the favorite spot for rallies and demonstrations [including the popular March in March] is becoming commercialized.

http://search.japantimes.co.jp/cgi-bin/nn20101013a6.html

Japan befuddled by elderly care debate

Wahyudin dreams of becoming a full-fledged caregiver, if not a certified nurse, in Japan. But the Indonesian worker must first pass the required Japanese-language national certification examination, which is far from easy.

Until then the 29-year-old Wahyudin, a registered nurse in his home country, will remain a caregiver trainee in an elderly-care facility in Yamada city in western Tokushima prefecture, where he has worked since arriving in Japan two years ago.

“It’s a long shot but there is no other way I can push my career forward and build a stable future [unless I pass the test],” Wahyudin, who uses one name, said of the examination.

Passing it would give him the professional caregiver status thatwould allow him to be hired by any hospital or nursing home in Japan. He can also expect higher compensation.

The language examination is designed to ensure integration into Japanese society and meet professional standards, but few foreigners manage to pass it. Now, those who work with the elderly in one of the world’s fastest aging societies say it is time to take a second look at this requirement, given Japan’s rapidly growing need for caregivers, many of whom come from overseas.

“Expecting foreign caregivers and nurses to pass the difficult examination in Japanese is unfair and smacks of discrimination,” said Tsutomu Fukuma, spokesman for the Japanese Council of Senior Citizens Welfare Service, a leading nursing care provider.

“The system has disappointed them and many are giving up on staying in Japan, which is not what we want,” he said.

As it is, the Health and Welfare Ministry says the number of Japanese caregivers, most of them middle-aged, is declining. There were 350,000 workers in the healthcare system in 2009, down from 400,000 three years ago. Younger Japanese are not entering the sector.

Japan has 13 million people aged over 75, or 10% of its population of 127 million. In 2025, that age group is projected to grow to 22 million people – and the government predicts that the country will need more than two million caregivers by then.

This is why Japan has been turning to foreign caregivers, but they are not finding it easy to stay for too long in the country. At present, foreign nurses and caregivers are allowed to work in Japan for a maximum of three and four years, respectively. During this period, they must study Japanese and pass the certifying examination that they can take only once.

Because Japan is officially a closed labor market to foreigners, it has different agreements with countries that allow a certain number of “trainees” each year to come work for specified periods of time.

Wahyudin, for instance, came under an economic partnership agreement (EPA) signed between Japan and Indonesia in 2008. A similar pact was signed with the Philippines, another major provider of caregivers here, in 2006.

There are 570 Indonesians and 310 Filipinos working in nursing or elder homes in Japan. A total of 254 have taken the nursing examination, but only three – two Indonesians and one Filipino – have passed and acquired full-time employment status.

Among others, caregivers and nurses seeking professional certification in Japan are lobbying the government to allow foreign examinees to use dictionaries during the test to help them with unfamiliar technical terms and Kanji or Chinese characters, one of three scripts used in the Japanese language, or Nihongo.

But beyond the examination itself, caregivers rue the limited time they have to study the language.

“It’s really hard for us to reach the level of language needed to successfully sit for the exam,” said Wahyudin, who has just one hour or so a day to review his Nihongo owing to his busy work schedule. He is getting formal language training, but he said this is far from adequate even with the six-month government-subsidized language course.

The situation of the elderly in Japan also reflects changing norms that have seen more young adults living away from their aging parents. In fact, the number of Japanese who are over 65 years old, living alone and with no one to look after them, numbered more than 4.6 million as of June 2009.

To many, this highlights even more the need for more caregivers, but not everyone agrees.

Professor Keiko Higuchi, a member of the government panel of welfare advisors, said Japan’s caregiving system should instead encourage the elderly to lead more independent lives. “I am not against accepting foreign caregivers or nurses. But before we start opening the doors [to them], Japan must ensure that its nursing care for the elderly continues to focus on helping them to help themselves,” she said.

Yukiko Okuma, a well-known author on nursing care for the elderly, sees Japan’s EPAs with Indonesia and the Philippines as a quick fix.

“The EPA with Indonesia is a quick remedy for the labor shortage we face in the welfare sector. As a result, we now have a system that faces the risk of lowering Japan’s nursing standards to accommodate more Asian nationals who are themselves not treated fairly under the scheme,” she said.

Okuma adds that today’s situation is also a product of a society where women, especially wives and daughters-in-law, have traditionally taken care of aging parents, leading to “a poorly recognized and underfinanced welfare system” in Japan.

“Japan’s welfare for the elderly must be viewed as a national priority, where workers are treated well by giving them good salaries, paid vacations and other employment benefits, whether they are Japanese or Asians,” she said.

http://www.atimes.com/atimes/Japan/LH13Dh01.html

Zenkoku Ippan Tokyo General Union Sues Max Ali For Unfair Labor Practices

Today at the Tokyo Labor Commission, Zenkoku Ippan Tokyo General Union sued Max Ali (AKA Muhammed Ali Muhammed Mustafa, Japan Advanced Labor Agency, et alii) for Unfair Labor Practices under the Labor Union Act (Act No. 174 of June 1, 1949) for repeatedly refusing collective bargaining with the union and for failing to pay wages to a union member.

(Unfair Labor Practices)

Article 7. The employer shall not commit the acts listed in any of the following items:

(i) to discharge or otherwise treat in a disadvantageous manner a worker by reason of such worker’s being a member of a labor union, having tried to join or organize a labor union, or having performed justifiable acts of a labor union; or to make it a condition of employment that the worker shall not join or shall withdraw from a labor union. However, where a labor union
represents a majority of workers employed at a particular factory or workplace, this shall not preclude an employer from concluding a collective agreement which requires, as a condition of employment, that the workers shall be members of such labor union;

(ii) to refuse to bargain collectively with the representatives of the workers employed by the employer without justifiable reasons;

Also see: Tozen ALTs Sue Muhammed Ali Muhammed Mustafa For Unpaid Wages

Are you an ALT working for Max Ali (AKA Muhammed Ali Muhammed Mustafa), Japan Advanced Labor Agency, or Japan Advanced Labor Staff Services (AKA JALSS)? Only if you are are a member of a trade union do you have the legal right to collectively bargain with your employer to improve your working conditions. Join Tozen ALTs today!

Language Schools Nova, Geos Get Yet Another New Owner

Restaurant operator G.communication Co. has sold its subsidiary that runs the language schools Nova and Geos to an investment fund managed by its founder and former chairman.

The Oct. 1 transaction was apparently triggered by the fact that G.communication’s parent company, Foody’s Co., has been hit hard by the recent failure of Incubator Bank of Japan. Investors to Foody’s include businesses with close ties to the bank.

G.education Co. had just taken over the operations of Geos this April after the school’s previous operator went belly up. G.education acquired Nova’s operations in 2007 following the bankruptcy filing of the school’s former operator.

G.education is now 66% owned by the investment fund, which is headed by Masaki Inayoshi.

http://e.nikkei.com/e/fr/tnks/Nni20101006D05JFA03.htm

Geos, Nova English schools change ownership once again

G.communication Co. has sold off the failed English conversation school chain Geos, which it took over in April, along with the Nova chain of English schools, The Yomiuri Shimbun has learned.

An investment company led by Masaki Inayoshi, who formerly served as chairman of G.communication, purchased the subsidiary of the Nagoya-based firm that ran both Geos and Nova, under a contract that took effect Friday, informed sources said.

Inayoshi’s purchase of the two English school chains followed a decision by Foody’s Co., the parent of G.communication, to withdraw from the operation of Geos and Nova. The decision came in the wake of the bankruptcy on Sept. 10 of Incubator Bank of Japan, the major banking partner of Foody’s, according to the sources.

The failure of the bank gave rise to concern over Foody’s financial management. Foody’s engages mainly in extending financial and human resources backing to restaurants and related businesses, they said.

Nova has 490 locations and Geos 167.

The firm newly in charge of running the Nova and Geos schools says it expects no major problems with their operations, the sources said.

http://www.yomiuri.co.jp/dy/business/T101005004522.htm

Nova, Geos now under investment fund’s wing

Nagoya-based G. communication Co. last week sold Nova Corp. and Geos Corp., two major foreign language school chains, to an investment fund.

The fund, Inayoshi Capital Partners, run by recently retired G. communication founder Masaki Inayoshi, acquired the stakes Friday by purchasing shares of G. education Co., a G. communication spokeswoman said.

Seven Geos language schools overseas, in Singapore, Hong Kong, Taiwan and Thailand, will remain G. communication subsidiaries.

“Both Nova and Geos will continue their operations, and we believe this will not affect the students,” the spokeswoman said, adding both brands will be maintained.

G. communications took over the operations of Geos just six months ago after the chain filed for bankruptcy with net debts of ¥7.5 billion.

The corporation purchased Nova in 2007 after the school chain went bankrupt.

The spokeswoman said the decision to sell off the two school chains was made because Kobe-based food and beverage distributor Hanshin Shuhan Inc. is poised to become the parent company of G. communications and wants to focus on its mainstay business.

Tokyo-based Foody’s Co. now owns a majority in G. communications but has agreed to sell its entire stake to Hanshin Shuhan.

According to the Asahi Shimbun, Foody’s is planning to sell its stake partly because of expected financial difficulties due to the recent bankruptcy of its main creditor, Incubator Bank of Japan.

Foreign-language schools have seen a decline in sales and enrollment recently.

According to the trade ministry, average monthly sales at language schools fell to ¥5.1 billion this year from ¥8.1 billion in 2007. The corresponding monthly enrollment figure decreased to 335,827 from 619,642 students.

http://search.japantimes.co.jp/cgi-bin/nn20101005x3.html