Saturday, September 8, 2007

Nova Bankrupt by November First?

Ken Worsley of Trans-Pacific Radio has made his prediction that Nova will no longer be functioning by November 1st.

You can listen to his prediction at 16:40 on the audio script here:

http://www.transpacificradio.com/2007/08/16/bizcast-japan-7-retail-uniqlo-condo-prices-nova-mobile-price-wars-and-the-state-of-the-japanese-workplace/

By the way, Ken Worsley accurately predicted the downfall of NCB, another English conversation school that went bankrupt. His prediction, which was made a year earlier, was accurate within six weeks!

A Teacher's Insights About Nova

Nova's Death Spiral

I've mentioned this before to some of my friends, but I'll post it here as well for posterity. Nova is in what I can only describe as a death spiral. Similar to a vicious circle, except spiraling downward towards the school's total demise. Just like a vortex or a whirlpool, the death spiral increases in force as one goes deeper, and there is no escape. Nova is in a similar situation I believe.

1) Students demand their money back. ---> 2) Nova doesn't have any money to give the students because Nova spent it all opening too many schools. ---> 3) Nova closes some schools to try and save money to pay the students back. ---> 4) Each time Nova closes a school, the students of those schools don't want to attend classes elsewhere so Nova ends up at at the top at number one again.

Many students joined Nova because it was convenient going to their local branch. Nova advertised itself as "Ekimae Ryugaku," or "Study abroad in front of the station," which was a big selling point. People are only willing to travel so far. Housewives, unless they work, don't usually have train passes to go across town. Likewise, most parents don't want their children traveling too far from home by themselves. Some students may have been willing to travel to the next station for lessons, but once that school also closes, how many will start clamoring for their money back too? Every time Nova closes another school, Nova just compounds the number of student complaints to METI and demands for refunds.

Lets not forget, in addition to student refunds, closing schools costs money. Long neglected repairs have to be made, booths dismantled, chairs, tables, computers, and carpet removed, etc. All of the school contents have to either be stored or throw away which costs money as large items cannot be just thrown out as regular trash. Signs must also be removed from the buildings which certainly isn't free either.

At first just a few of the smaller, branch schools closed, but now we are seeing some big names. Large flagship schools right in front of some of the busiest train stations in Japan are now slated to be closed. These are not recently opened schools with just a few students. These are large schools that have been around for many years with large student bodies. That means more students will certainly demand their money back. The spiral is tightening and squeezing out what little life there is left in Nova.

Bakananova

Monday, August 20, 2007

The Nova Experience

Amid all the recent scandals regarding Nova, it may be forgotten
what Nova really offers those seeking the Nova experience:

1. No paid public holidays (about 14).

a. No extra pay for working public holidays.

b. No days of in lieu of working public holidays.

2. No paid sick days.

3. Fines for being late.

4. Cramped working conditions in many branches.

5. Very Poor training.

6. Unreasonable overcharging for accommodation.

7. Having to pay for background checks, agency fees for a nova job.

8. Cheap, old folding chairs to sit on.

9. A gruelling 8 lesson a day schedule in many cases.

10. Substandard textbooks. No alternative material allowed.

11. A company that is under heavy scrutiny by the government for
business misconduct.

12. A company which has been taken to court numerous times by
instructors and students. Guilty as charged in nearly all cases.

13. No salary payments between lessons, to save on insurance
payments.

14. Environmentally unfriendly, cramped cubicles to teach in.

15. No bonuses. Not even a New Year Card to say thanks.

16. Violation of working holiday agreements.

17. Many schools in basements with no windows.

18. No fire or safety drills.

19. Tatty, old buildings.

20. Smelly, stained carpets in many branches.

21. Complecated salary payments:

a) Base salary.
b) Service allowance.
c) Regional allowance.
d) Regularity allowance.
e) Shift allowance.
f) Qualification allowance.
g) Position allowance.
h) Probationary period payment.

22. Branch staff convicted of maliciously lying to customers.

23. The employee SHALL participate in any controlled substance
testing PROGRAM required by the Employer.

24. JMA, Japan Medical Assistance, is a Nova based company which
does not directly provide health care.

25. No union recognition.

26. Academically unqualified supervisors.

27. 500 yen year end bonus, if you are lucky.

28. Out of control, snotty nosed kids' classes.

29. Students using Nova as an illness recovery centre. A common
reason for coming to Nova is: My doctor said it would be good for
me.

30. Inane warnings to instructors on the so-called Lesson
Management Plans (yes, that is what they call the teacher
instruction pages for each lesson). Warnings go something like this:
When you are asking the students personal questions, be sensitive
and remember you are living in Japan. Although the students are
learning a foreign language and its culture, we must try not to be
offensive. Remember Nova is a business. Try hard not to scare the
students. I exaggerate of course. But you get the idea.


Julia's advice to those thinking of working at Nova:

Before signing the Nova contract, if they offer you one, I would
consider a few things if I were you:

a. Nova is not offering the good raises that they did a few years
back. When I was new here, 10,000 and 15,000 yen a month raises
(upon signing a new contract) were quite common. Now they have gone
the way of the dinosaur.

b. Nova just replaced their long-used textbook with one that is, to
put it mildly, questionable in development and in content. It's
basically just a glorified-looking, glossy phrasebook. The old one
probably needed replacing (simply because it was over 20 yrs old)
but not with the rag they have us using now.

c. Nova has hundreds of branches all over the country. While there
are more than a few good branches to work in (including the one
where I have been the whole time I've been here), many others are
the PITS. It's really a roll of the dice where you end up. They'll
tell you that you can transfer to another branch/city if you want,
which is true on the surface but many desirable areas of the country
have long waiting lists.

d. You'll be promised a fixed schedule and location... then it will
be fiddled with so many times after you get here that it won't seem
too fixed anymore. Most of the time I and the other teachers I work
with just roll with it; but it can be annoying if it happens often
enough.

And it used to be that if you were flexible about this type of thing
in the past, it could help you get a good raise when new-contract
time came up. But as mentioned in Part A upstairs, the nice raises
are a thing of the past.

e. We used to get GDHs (general duty hours) to plan Special Voices,
do administrative tasks, and so on. But like nice raises, GDHs have
now become extinct. Titled instructors (I am one) used to get a set
number of them to perform the many administrative duties that are
required of us, but now we're expected to squeeze them in whenever
we get a "free" (no lesson booked in a given time slot) or empty
Voice room. Okay if your branch gets its share of frees and empty
Voices, but most branches don't.

In other words, the company is squeezing more work out of us for
less time and less money (in the form of smaller and/or nonexistent
raises...)

f. Despite a slew of legal challenges, and a ruling from the Osaka
bar association (not legally binding, but usually very influential),
Nova continues to employ a non-socialization policy between teachers
and students.

Despite the bar association's ruling that the policy is
discriminatory (it only applies to the foreign teachers, not the
Japanese staff) and an invasion of privacy, Nova still sticks us
with it. They still try to tell us with whom we can or can't spend
time in our private, off-the-clock time.

g. In conclusion, I've seen all little changes happen during
my "illustrious Nova career" and the changes are not for the
better.

So ... if you're not planning on staying here long ... if you're
just going to work for Nova a short time and then take your services
(and visa) somewhere else ... give it a shot.

You may even end up in a good branch (maybe even mine!) and have a
pretty pleasant experience, and end up staying with Nova a while ...
and wondering what all the complaining is all about. If so,
consider yourself blessed.

OR... you may end up in a s--thouse of a branch with a s--thead of
an AT and end up hating it. (I'm an AT, but trust me, I'm not one
of the s--thead ones!)

If you can get in with JET or with one of the other eikaiwas (like
Geos or ECC), you may, on average, be better off.

Best of luck to you, whatever you decide.

-----------

This was written by Bob Sixpence and was originally posted on Nova Teachers United, an online Yahoo group. It is being reprinted here courtesy of the author.

Original post:

http://groups.yahoo.com/group/novateachersunited/message/34239

Sunday, August 19, 2007

Nova hit hard for Malicious Lies and Deceit

METI: Ministry of Employment, Trade and Industry.

1. Nova's way of soliciting students was EXTREMELY MALICIOUS,"-METI

2. METI ordered Nova Corp to suspend part of its business for LYING
to consumers about its services when soliciting students.-METI

3. Nova VIOLATED THE LAW aimed at protecting consumers in fields
such as education, beauty services and arranged marriages.-METI

4. "NOVA engaged in ILLEGAL ACTS, with the top management at its head
office authorizing the irregularities,"-METI

5. "The company even compiled a manual advising staff about how to
respond to claims by students."-METI

6. Students were not able to take lessons at a school or time of
their choosing, even though Nova claims when soliciting new students
that customers can book language lessons "anytime and anywhere."-METI

7. Nova staff encouraged people to enroll during what they claimed
was a campaign period in which new subscribers would be exempted from
entrance fees. But it was found that Nova did not charge new students
admission fees anyway throughout the year.-METI

8. Nova provided students with false accounts on its cancellation
policy. It also imposed high cancellation costs on students.-METI

9. METI ordered Nova to report complaints from customers about its
sales and contracts to the ministry every three months for two years.

10. The ministry said it will slap an additional measure on the
company to improve its business if necessary.-METI

-----------

This was written by Bob Sixpence and was originally posted on Nova Teachers United, an online Yahoo group. It is being reprinted here courtesy of the author.

Original post: http://groups.yahoo.com/group/novateachersunited/message/34509

Nova Wasting Money

Nova cannot pay its staff on time and they have also told students that there is a several month wait before they can receive their refunds.

Despite being 3 billion yen in debt in 2005 and then going another 2.6 billion in debt in 2006 even after closing almost 100 schools, what does Nova do?

Nova wastes money on their RACE CAR TEAM!!!

http://www.supernova-racing.com/

This is just unbelievably rude. Nova is wasting money on the upkeep of an expensive race car, two drivers, and an entire support team. They even race on tracks all over Europe and the Middle East.

We don't even have basic supplies like pens and paper in our branch of this well-known English school, but they have the nerve to continue to waste money on race cars.

The teachers and Japanese staff want to be paid on time! Day after day we come to work not knowing if the doors will actually be open as Nova may go bankrupt. It seems that all Nozomu Sahashi, the president of Nova who refuses to step down, is to continue to use company money on his personal hobby.

Nova Can't Pay its Staff

On June 15th, Nova teachers' salaries were paid 12 hours later than usual, and only after teachers had called head office to complain and had considered not even showing up for work. Nova had blamed it on "a glitch" at the banks, until teachers had started complaining to their banks who denied any responsibility.

On July 15th, teachers got paid, but the Japanese staff were panicking as they did not receive their regular summer bonuses. This was difficult for them as their salaries are already so low compared to the teachers' salaries.

As of this morning (Mon. July 30th), Nova's Japanese staff still had not received their salaries that was due to be deposited in their bank accounts last Friday (the 27th). This time, Nova has claimed that the delay was due to a problem with their new salary system, however no one had ever heard of a new system being implemented until after the Japanese staff weren't paid.

This is not a matter a liking or not liking Nova. The facts can stand on their own. When we were assured of being paid they job was not necessarily that bad, depending on the branch you were in and the AAM/trainer you had.

However, the fact is that that now working for Nova is a real gamble. The company is deeply in debt, it is being forced by the government to pay back money to the students who have asked to cancel their contracts, and Nova is unable to sign any new students up to longer contracts for the near future.

The future is bleak, teachers and staff are leaving en masse, and moral was never that high to begin with. The Japanese staff and AAMs are trying to put on good face on the situation at best, or at worse living in denial that their years of faith in the company and the time invested in their "careers" at Nova are about to meet the face of reality as the company goes bankrupt.

The company can only stagger on in debt for so long. That is the nature of the market system. If people want to continue to work and cling to hope that they will get their pay, then they are more than welcome to go ahead.