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G Education Interviewed Former NOVA Employees

With all the recent news about NOVA and its new sponsors here is another piece of information. On Friday, November 10th G Education held an interview session in the city of Morioka, Iwate prefecture. Teachers at this interview went through the resignation/rehiring process (they were also reimbursed for the travel).

In my opinion, this company wants to get a physical perspective of how many teachers and staff out there are ready to go back to work. Why else would they travel to Morioka to hold interviews? I will go so far as to say that if they believe the numbers in the Tohoku area are strong, they might consider re-opening branches in various cities. I will speculate and say it may be one branch per major city area (1 branch in Morioka, 1 branch in Akita City, 1 branch in Hirosaki, 1 branch in Aomori City, 1 branch in Hachinohe). If the teacher and staff numbers are low then I gather G Education will give relocation offers (a gesture to show that the trip was not a waste of time).

Morioka Reimen

Whether this train of thought is idealistic or not, I think this is an opportunity for those who want their jobs back. Basically, no one has anything to lose except the travel cost to Morioka, which G Education reimbursed, so no one lost anything. If the offer sounds bad, teachers can walk away, eat some wanko soba (one of Morioka’s famous noodle dishes), and continue looking for a new job. If the offer sounds promising then teachers can take it and celebrate by having some reimen (another Morioka noodle dish).

With all these opportunities coming about I still have to wonder a few things – how did G Education gain control of NOVA operations without assuming NOVA debt? How did teacher salaries get passed off to the Japanese government (meaning former teachers will only see maximum 80% of past wages, and that’s after a lengthy process)? What about creditors, students, vendors, etc.? How do they get away with all this? Who is holding Nozomu Saruhashi accountable for what happened? Where is he? What is G Education going to do to repair teacher, as well as student confidence and trust? I’m sure we will revisit these questions, and this issue will not die out anytime soon.

14 comments - What do you think? Posted by W. Anthony Malcolm - November 11, 2007 at 10:55 am

Categories: Foreigners in Japan, Teaching English Tags: Eikawa, G Education, gaijin, interview, nova

David

If the offer sounds bad, teachers can walk away, eat some wanko soba (one of Morioka’s famous noodle dishes), and continue looking for a new job. If the offer sounds promising then teachers can take it and celebrate by having some reimen (another Morioka noodle dish).

You ask some good questions only time will tell the answers to but the above one, which is not a question needs an answer.

Of course teachers will hear something promising and celebrate. The hard time comes after working for a month and realizing after the first pay check that the promises made were never intended to be kept and never will.

It happens so often in this country. Promises made to get the people to sign on, then after they have made the committments and moved into situations they can’t easily extricate themselves from, they soon realize the promises were nothing more than a ruse to get them there in the first place. Bait on the hook. Hook taken and nowhere to escape.

Where is the Union, police, lawyers, mommy? They cry.

Gloom, despair, and agony on me.

http://uenomurakami.wordpress.com W. Anthony Malcolm

Well, apparently some 80% of the teachers left over from NOVA signed on with G Education. Do you think they did this because they were really on the skids, or do they really want to go back and work, or are they just nieve? Not sure what to think really about that.

I know this will cause a storm, but at least the teachers are being kept in the game. There is some slight hope out there, if nothing else. The students have been thrown to the curb totally. I know they will recoup cost over time, in most cases, but they do deserve some attention, but seem to be getting none. Really sad.

Thanks David

David

80% of former nova teachers signed on with G Corp?

I don’t mean to be nit picky but where did you get that?

according to G Comm’s press release:

From the G. Com url that was posted earlier:

平成19年11月9日（金）・10日（土）、株式会社ノヴァの職員への説明会兼雇用面談を実施しましたので、
下記の通りご報告申し上げます。

　・日程　11月9日（金）・10日（土）
　・会場　　9日　東京・大阪
　　　　　　10日　東京・大阪ほか24箇所
　・来場者数　　約3,500人
　・現時点での採用内定者　1,760人（外国人1,548人、日本人212人）
　　※併せて検討中の方も694名という状況です

That’s around 34% of the estimated foreign workforce of Nova around the time of it’s collapse (4000) and about 10% of the Japanese workforce of which even less is known but which was estimated to be about 2000 people at the time.

What isn’t clear is what percentage of these are management AT’s and AAT’s ABM’s And BM’s, a lot of them were recruited to return. They may be included in these figures. I don’t know. If they are then the percentages would be less.

David

So I guess if G Comm is planning on opening 200 schools eventually those numbers would seem to be just about exactly what they would need. Coincidence?
http://uenomurakami.wordpress.com W. Anthony Malcolm

David,

I should clarify that the about 80% number was what I heard from those attended the meetings on Saturday. I suspect that the number is a percentage based on teachers who are still in the country and had not officially resigned.

I think G Communication/Education is trying to see if it is worth it to open schools in the Tohoku area.

Oh, one thing I did hear – G Education will pay teachers for being on “standby.” And the teacher pay will be at the same rate that was previously stated on, at the time, valid NOVA contracts.

I don’t any details about the Japanese sales staff. They seem to have been screwed.

Look for a definite answer concerning the big picture and future of branches within the next few days to week. I think something will come up regarding longer term branch openings and planning.

One major question I have is, what is the housing situation for those who are still in NOVA apartments?

Thanks David

The Overthinker

Am I the only one who is being smuttily amused at the possibilities for fun with “wanko” soba? Surely not….

(I try to be elevated and above silly word games, but it’s not always possible….)

http://uenomurakami.wordpress.com W. Anthony Malcolm

Have you ever eaten the famous noodle dish? It is quite an experience.

I’m not good at word games, so could you elaborate on your meaning.

Thanks Overthinker

The Overthinker

The only time I was in Aomori I had about half an hour to look around the station area, and just bought apple-related stuff, so have never had the noodles. Try reading it as “wank-o soba” for the full effect. And it definitely looks bizarre.
http://uenomurakami.wordpress.com W. Anthony Malcolm

Got it!!!

http://www.japaneconomynews.com/ Ken

There’s no way that any of the firms applying to ‘sponsor’ Nova would have agreed to assume its debt. In other words, they weren’t really sponsoring Nova at all, and the use of that word was misleading at best.

This must have been the best deal on the table, from the point of view of the bankruptcy administrators.

http://uenomurakami.wordpress.com W. Anthony Malcolm

Ken,

Apparently there were some ministry officials at the recent meetings held over the weekend. One thing of caution that you might be able to clarify (or anyone else) – what is the VISA situation for those who are in this situation? Also, what about those who officially resigned and aren’t going back? I thought we had like 60 to 90 days to find a new sponsor. Maybe I’m greatly mistaken. Someone I know who went to the meeting said that all current VISAs were illegit, and G Education would sponsor some sort of interim VISA. I was told that the Ministry will deport anyone with an invalid VISA. Is this correct? Can this be? If so, no wonder 80% resigned. I wouldn’t want to get deported as well.

Also, what would the possibility of another Eikawa outfit picking off more branches? For example, could GEOS, AEON, Berlitz, do a deal with G Education to say take over schools in Hokkaido? Is that even a viable option?

Lastly, are the students and vendors, and other creditors just left out to dry in this rainstorm? Who pays them? It seems the government has to step in and liquidate NOVA assets, but they what they get seems worthless.

Thanks Ken.

The Overthinker

NOVA does not control your visa or length of stay. The Government of Japan granted you X amount of time in the country, and only in exceptional circumstances (which this is not: it means eg ‘language students’ who never go to class and instead work on the sly) is that revoked. Otherwise any company could threaten you with deportation (through firing you) despite the fact that the company has no authority over who can live in Japan (and the GOJ is very jealous of its authority…).

Seriously, do NOT depend on rumour and hearsay, or even me. Ring the local Immigration department if you are worried – it’s what they’re there for. Any large branch will have multilingual staff if your Japanese isn’t up to it.

Max

I don’t know how the meetings on the 10th were conducted out in the boonies, but the Osaka and Tokyo meetings were ‘simulcast’ via the Ginganet system.
In the afternoon meeting, Mr. Takahashi, one of the trustees, and Mr. Ono, the president of G-Education, were at the Osaka meeting.

Mr. Higashibata, another of the trustees, and Mr. Inayoshi, the president of G-Communications, were at the Tokyo meeting. We could see and hear all four of them speak.

Mr. Takahashi explained gave an explanation of their activities since October 26th, and said that on November 6th, the court decided to turn NOVA over to G-Communications, because of all of the companies who came forward, G-Co’s offer was the best, by far.

He outlined the following points:

* No company wanted to take over NOVA’s debt (5.7 billion yen). Well, duh…

* No company offered to refund lesson fees to NOVA students who had cancelled their points.

* No company offered to accept 100% of NOVA students’ un-used lesson points.

* No company offered to pay NOVA employees’ unpaid wages and salary.

* Only G-Communications offered to give re-hire all NOVA employees.

* G-Communications’ offer of a 75% discount on remaining lesson points was the best offer of any company.

* Only G-Communications offered to keep NOVA all together… and not break up the company.

Other companies wanted to break NOVA into regional parts, or only wanted the Ginganet system, or only wanted a few schools. The trustees’ stated goal from the beginning was to keep the company together, or to just start bankruptcy actions.

Both Mr. Inayoshi and Mr. Ono spoke briefly, offering words of optimism and encouragement. Mr. Inayoshi remarked about how surprised he was when he first visited NOVA’s headquarters in Namba. He was surprised at what a juggernaut the company was, and at the secret rooms of the former president’s penthouse office/apartment. He said that all of the branches are closed, and G-Communications doesn’t have the keys, and they don’t know how many people they have (as of November 10th).
He said that his number one reason for offering to sponsor NOVA was that he wanted the challenge of rebuilding the company.

Mr. Ono mentioned that two of his three children were NOVA KIDS students, and that they really liked “Bob-sensei”, and hoped they could go back to NOVA soon. He also said that many of the students and teachers at G-Education’s 880 juku were also NOVA students, who also were eager to resume lessons. He said that they’ve received many phone calls and many positive messages about NOVA staff and instructors from ‘NOVA fans’, and many callers asking when branches will be reopened.

Then, a government representative gave an explanation about the 80% repayment of lost wages. This is based on the “Security of Wage Payment Law”, and is administered by the Japan Labour Health and Welfare Organization. Ex-NOVA employees who were not since August (staff) or September (instructors) will be reimbursed by the government. Up to 80% of lost wages, but the payment has some limits based on age.

Then, representatives from the Osaka Labor office gave an explanation about unemployment compensation, complete with a bilingual, multi-page handout.

Apparently, a few of the attendees had weak listening comprehension, despite the fact that the entire meeting was bilingual. (Anders Lundqvist interpreted all the Japanese statements into English, and vice-versa for English questions.) When the Osaka Labor official finished his presentation about unemployment benefits, he asked if there were any questions. Some genius stood up and asked when he could get back into his branch, because he had left some personal stuff in the teachers’ room, and he wanted to get it. The official from the Osaka Labor office was polite enough to not roll his eyes.

We were told:

* Bankruptcy procedures will go into effect within two weeks.
* Resign from NOVA today (November 10th): be rehired by G-Co. tomorrow (November 11th).
* People who choose not to resign from NOVA today (November 10th) will be automatically dismissed by NOVA. Normally, there must be a 30-day notice before such a dismissal, but since that is impossible in this case, you will continue to be considered an employee of NOVA for the next 30 days. 30 days’ severance pay will be added to the amount included in the 80% reimbursement by the government.

* There will be a reduction in the number of branches.
* All who want jobs will be rehired after a short interval.
* We will be hired by G-Co. on the day after we resign from NOVA. (This offer was for those who had not already resigned as of November 10th.)
* Currently, there is probably not enough staff left to run 100 schools.
* Branches will be re-opened gradually.
* Salaries will be calculated from the first day of employment by -Co.
* Unpaid wages for September, October, and November are NOVA’s responsibility.
* The Ministry of Health and Labor will pay 80% of lost wages.
* People hired by G-Co. will be paid for the period from November 11th to November 20th on November 30th.
* G-Co. cannot offer any salary advances, but may pay people on a daily or weekly basis, upon consultation and based on individuals’ needs.

What many people seem to have failed to realize is that G-Communications did not have to do anything. They’re taking quite a big gamble, and even if everything turns out to be no more than a very kind gesture, it’s a lot more than anybody else did. Yet, there are some hand-biters out there who want to make ‘demands’. This is very strange, but not really surprising. Some people just want to transfer their anger to whoever is available, and since Sahashi, or NOVA staff aren’t handy, they reflexively turn on G-Communications.

One more thing… to the question about NOVA’s creditors… that’s what bankruptcy court is for. It’s now up to the court to liquidate NOVA’s assets (yeah, right) and then divide that up between, um, let’s see…

* the banks who are holding outstanding loans,
* the landlords of offices, branches and apartments,
* the students who demanded refunds and the students who are left holding unused lesson points,
* the staff who never received their summer bonus or their salary since August,
* the instructors who haven’t received their wages since September,
* and various other vendors (utilities companies, etc.).

How do you say ‘Sayonara, Okane-san!’ in English?
Johnny

Well… All I can say is that I am glad I got off of the Titanic when the going was good. I left just before it went tits-up.

I actually thought that in some ways, Nova was good. It had some good stuff going for it. I thought that it was well run from the point of view of the teachers. On the negative side, I don’t think that they did a good job with the points and taking care of the students. They concentrated too much on sales and not enough on quality control once the students had signed on. Sometimes they would take me away from a classroom or voiceroom and leave the existing students without a teacher just so that I could talk to a prospective client or do a demo lesson. That mentality led to their downfall.

G Education Interviewed Former NOVA Employees

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