This is the end is the beginning is the end? October 27, 2007

Ok, so yesterday was a big day for NOVA. I work up early because I was planning to go to the American consulate to ask for advice regards to our unpaid wages. It was upon receiving a text from a friend at around 8AM that I discovered NOVA had filed for protection from its creditors, the first step towards bankruptcy. The previous night, an emergency executive meeting was held and the president was removed from office. He has been missing for weeks and refuses to show his face anywhere.

All of NOVA’s schools will now be closed for 10 days. During these 10 days, the remaining executives will try and find financial support and restructure the company. If this cannot be done within the 10 day period, bankruptcy will be declared.

At 5:30 there was a huge meeting at NOVA’s headquarter’s where I work, with easily over a 1,000 people there. Anders, one of the original founders of NOVA was there . They spoke about the situation and answered questions. We have been told at this time to wait at home for hte next ten days. These days will be paid even though we don’t have to work. So, I have 10 days holiday in a row and no money to do anything!

After the meeting, many of the people that I work with went to a large pub/bar to drink the night away. I would say that there were maybe 200 people there – foreign and Japanese staff. At  work, the Japanese staff are generally very reserved and don’t befriend us, but last night all bets were off and people were consoling each other. I went to the bathroom and there was a Japanese staff member on her knees laughing hysterically and screaming “Nova…. Nova…. Usoo…. (it’s not true)” Her friends (slightly more sober were around her saying “Daijobu? (are you ok?)”

Anyway, there are several investors keen on different parts of NOVA. NOVA has 3 main sections – the multi media center, kids schools, and adult schools. It seems like the multi media center (where I work) is of interest to yahoo and a few other tech companies. So we might get bought out.

Many of my friends are leaving in the next few days, which is very sad. I’m determined to stay no matter what and I have another job interview next week. Also my new visa came through and I can go and pick it up on Monday!

So now all there is to do is wait and see…..

 Links:

 http://www.timesonline.co.uk/tol/news/world/asia/article2748901.ece

http://www.japantoday.com/jp/news/420582

http://business.guardian.co.uk/story/0,,2199977,00.html

Down and out in Osaka October 23, 2007

Still haven’t been paid. We have a promise to be paid soon. I spoke to my landlord about the situation (as my rent is due in a few days) and he threatened to evict me. The Japanese government still does nothing as thousands of foreigners are unpaid, being evicted, and some unable to even eat or commute to work. This goes unreported in the Japanese media. I have learned (again and again) that in Japan if there is a problem, the best thing to do is to a) ignore it till it gets worse or b) ignore it till it goes away. People are so ignorant and have so little common sense about many things. Some of the lessons I teach are on charity and environmental issues. The Japanese people (in general, there are A FEW exceptions) have no concept of charity or helping out other people and are baffled by why anyone else would want to do this. If someone is in trouble… it is always their fault. Also, people here in the world’s most materialistic and wasteful society are under the illusion that Japan is environmentally-friendly. This is one of the questions in a class I teach and am always astounded at the answer. I have job interviews but am just not sure I want to be in a country like this any more. As much as I dislike America, this would never happen there. I’m going to my consulate this week to file a report and see what can be done, as other consulates have been assisting their citizens.

Still working… October 20, 2007

So my company was supposed to pay us yesterday….. didn’t happen. I went into work because my unemployment payout depends on going into work. I can still get unemployment if I call in sick, but it will be less money. So…. I still go into work. It is really horrible knowing that you are working, not for a paycheck from your company, but a welfare check from the state. I am currently applying for tons of jobs and might have a possibility coming up. We received a memo from our president at the end of the day saying that we might be paid sometime “around the 25th”. What the fuck does that mean?! Gotta go get ready for work….

Last day….. maybe ok? October 15, 2007

So today was possibly my last day at work. I’m taking tomorrow off because in the middle of all this chaos my grandma died and her funeral is tomorrow. I want to be able to talk to people after the funeral and actually have a chance to mourn properly and not have to be scrambling between applying for jobs and my job at NOVA. Then I always have Wednesday and Thursday off as my normal weekend. We are supposed to be paid on Friday, so the money should be in our bank accounts at midnight on Thursday. I’m not expecting anything. I may or may not go in on Friday if we don’t get paid. This of course depends upon if NOVA is still open for business.

 The press showed up at work today which was not appreciated. They were promptedly kicked out and signs were posted everywhere stating that only authorized personnel was allowed. For once I AM an authorized person!

There were a lot more people at work than this weekend, especially a lot more green tags. Ok, let me explain about the tag system at the multi media center. Normal instructors = purple name badges, Assistant trainers (what I was supposed to be if the company weren’t in the shitter) are light green, Center trainers are dark green and have been there 5+ years, above that are blue tags which have been with the company 10+ years and at the top are pink tags which have been there FOREVER like 15-20 years.

So there were lots more green tags in today which was a good sign because they weren’t there this weekend. There were more normal instructors there too, however, there was still a shortage of instructors. At one point we had a BLUE TAG down on the teaching floor giving a lesson. He probably hadn’t taught a lesson in over 5 years. Crazy….

 They were also packing up computers on one of the teaching floors…. which is probably not a good sign.

I honestly have no idea if I will ever go into work again. At the rate this company is collapsing, it might not even make it through the weekend. Stay tuned …..

Osaka’s burning! October 14, 2007

Work was empty today. 150 English instructors called in sick. We have a total of maybe 400, but about 250 work on Sunday. Our work is spread over 3 teaching floors – each teacher is assigned to a floor. Today we were scrambling between floors to cover all the lessons.

The best way to describe the atmosphere is like the day before summer vacation back when you were in school. The kids are all antsy and excited, no one can concentrate. Usually rules are strictly enforced at work – where you can eat/drink, what you can wear, etc…… Today people were just grateful if you were there!

I’m going in tomorrow even though I probably won’t be paid for it. I can reclaim most of my wages from the gov’t when NOVA officially falls, but my students are going to lose thousands of dollars that they paid up front for lesson points. At this point, I’m only coming in for my students, the majority of which are very cool people that I will miss speaking with.

Tomorrow is probably going to be my last day, unless we get paid on Friday. On the plus side, it looks like I may have another job lined up, but nothing is for certain now.

It appears that the rumor I heard yesterday was in fact true. The man responsible for last week’s deal that was supposed to bring cash into the company was arrested for fraud yesterday. It looks like we won’t be getting that ‘cash injection’ or paid.

From inside the bunny…. October 13, 2007

Ok, so as many of you know I came to Japan about a year ago to teach English. I have been working for NOVA at their headquarters in Osaka.  The bunny is NOVA’s mascot, hence the title for this post.

NOVA has been plagued with scandals and is now teetering on the brink of bankruptcy. Several years ago NOVA (the most successful English school in Japan with maybe 60-70% of the market share) decided to expand. In an act of pure hubris, a school was opened at EVERY subway/railway station in Japan. The suppy far exceeded demand and they were forced to scale back. This over-expansion was the beginning of NOVA’s downfall. Some might argue that it began with the company’s shady and forceful sales tactics aimed at acquiring new customers, but I think to some extent all major corporations do this. 

The aforementioned sales tactics pressured students to purchasing points for lessons in advance that had an expiration date, saying that they could take lessons at anytime. In reality, many students were unable to schedule lessons, their points expired, and they were denied refunds. This was the beginning of the many lawsuits against NOVA.

In February of this year, the government raided NOVA’s headquarters where I work, seizing computers and information. This coupled with allegations of false advertisements resulted in a hefty ban imposed on NOVA by the government in June 2007. The ban prohibited NOVA from signing up students on long-term contracts.

Now a side note about NOVA’s business strategy. NOVA sells huge packages of lessons and uses the money for tomorrow’s lessons to pay for today’s fees – rent, salaries and so forth. Without the income generated by long-term contracts, NOVA has been unable to meet its financial obligations.

In July, the Japanese staff’s salary was late and their bonuses delayed until October. In August, the Japanese staff’s salary was also delayed. As of today, October 14, the Japanese staff have not been paid for September. Normal instructor’s salaries have always been on time until now. We received a memo saying that our salary would be delayed from the 15th of October to the 19th. Within NOVA we have a few different ranks of instructors, the majority being regular instructors. Above them we have a few tiers of trainers. In September, the trainers’ pay was delayed by 2 weeks.  So that brings us up to date on the payday situation.

Many NOVA instructors (maybe most?) live in NOVA accomodation. The money for your apartment is deducted from your paycheck. NOVA has been deducting money from instructors’ paychecks but not paying the landlords. Most instructors in NOVA accomodation have been served eviction notices in the last few weeks.

In addition to not paying instructors’ rent, NOVA has also not been paying instructors’ health insurance. I have heard of instructors having to fork out at the hospital because they were no longer covered.

Fortunately, I have my own apartment and private health insurance that I purchased before coming to Japan.

There are a few more things to add, such as moving money to off-shore accounts and dodgy bank accounts in the Virgin Islands. There was also a rumour that someone has been arrested for fraud today.  My friend has had the electricity switched off in his apartment because NOVA has failed to pay the utility bills. We don’t know if we will ever get paid by NOVA again, my guess is not and that NOVA will declare bankruptcy in a few weeks. I am currently waiting for my new visa to come through, so hopefully this will happen before NOVA collapses.

That’s it for now folks.