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Collusion Among The ALT Dispatch Companies?
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Black_Beer_Man



Joined: 26 Mar 2013
Posts: 453
Location: Yokohama

PostPosted: Sat Sep 24, 2016 1:43 am    Post subject: Collusion Among The ALT Dispatch Companies? Reply with quote

What do you think about the dispatch companies that hire westerners for ALT positions?

I look on Gaijinpot's website and all of these companies pay 220,000 yen ~ 250,000 yen salary a month.

The consistency of these wages almost suggests collusion. I don't see anybody breaking the 250,000 yen ceiling.

I know that some of these companies employ teachers from non-western countries such as the Philippines and India.

While I don't doubt the qualifications of these teachers, I ask myself why these dispatch companies aren't hiring teachers from western countries for these positions?

Is it because westerners think 250,000 yen a month is too low?

Is it because many of these positions are unattractive because they are in locations an hour or more away from Tokyo and other major cities?

Or is it because these companies are trying to suppress salaries by employing teachers from countries where their net monthly savings goes much further?

And what do you think of the school boards that use these dispatch companies?

From the ads I see, any one dispatch company has school board clients in several areas / prefectures. They must be making huge profits.
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mitsui



Joined: 10 Jun 2007
Posts: 1562
Location: Kawasaki

PostPosted: Sat Sep 24, 2016 3:17 am    Post subject: Reply with quote

Supply and demand.
People know wages are stagnant so some people head to other countries.
People from the Philippines aren't going anywhere, and for them, it is better than they can do back home.

Lots of Philippina teachers work at elementary schools and I wonder if they can even make 200,000 per month.
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Inflames



Joined: 02 Apr 2006
Posts: 486

PostPosted: Sat Sep 24, 2016 3:46 pm    Post subject: Reply with quote

Actually did hear from a friend who worked at S Gakuen (rest is up to your mind) that the manager was invited to a meeting with people from other companies to divide up contracts.

CTS is notorious for taking contracts from other companies and extending the hours for the same price.

ECC and AEON generally don't play games (any work done is at the rate in your contract - no variable hourly rates or anything).
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Black_Beer_Man



Joined: 26 Mar 2013
Posts: 453
Location: Yokohama

PostPosted: Sat Sep 24, 2016 10:54 pm    Post subject: Reply with quote

Does anyone have any idea how much of the original amount of an ALT's salary the dispatch company pockets?

10%? 20%? 30%?

A friend of mine is a direct hire at a public school. He is paid 5500 yen per class, but that's on a part-time basis and he says that his hours have been decreasing over the years as he is seeing more and more JET teachers move into ALT positions in his schools.
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mitsui



Joined: 10 Jun 2007
Posts: 1562
Location: Kawasaki

PostPosted: Sun Sep 25, 2016 12:23 am    Post subject: Reply with quote

In Kanagawa it is Interac. The prefecture outsourced the teaching to them.
In Tokyo much work is part-time.
In Osaka I think pay got cut.

Maybe the worst was somewhere in Kyushu. A teacher made a video on Youtube about how far his money goes. I think it was put up on a union site.
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rxk22



Joined: 19 May 2010
Posts: 1629

PostPosted: Sun Sep 25, 2016 4:20 am    Post subject: Reply with quote

mitsui wrote:
Supply and demand.
People know wages are stagnant so some people head to other countries.
People from the Philippines aren't going anywhere, and for them, it is better than they can do back home.

Lots of Philippina teachers work at elementary schools and I wonder if they can even make 200,000 per month.


When I worked for Inteac up til 2012, Filipinos made only 180,000 a month. That was their ceiling. I think you're seeing more and more, as ALTs are an added cost, and many places can't afford them. Which keeps the wages down
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scrying



Joined: 14 Nov 2004
Posts: 27
Location: Nagoya Japan

PostPosted: Mon Sep 26, 2016 5:19 am    Post subject: Reply with quote

Black_Beer_Man wrote:
Does anyone have any idea how much of the original amount of an ALT's salary the dispatch company pockets?

10%? 20%? 30%?

Depends on the city, but generally 25% and up. You can actually look up the contract as a matter of public record (no, really. General Union did it while looking at Interac's dealings in Chubu).

Black_Beer_Man wrote:
A friend of mine is a direct hire at a public school. He is paid 5500 yen per class, but that's on a part-time basis and he says that his hours have been decreasing over the years as he is seeing more and more JET teachers move into ALT positions in his schools.


More JETs? I'd be surprised. Despite the lip service, I don't think they've actually increased that budget yet (though supposedly that's coming.) Smaller cities are leaning more and more towards direct hires though, citing dissatisfaction with dispatchers and a greater desire to have control over the process. Worked out wonderfully for me, as I was able to snag one such deal in Aichi.
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Inflames



Joined: 02 Apr 2006
Posts: 486

PostPosted: Mon Sep 26, 2016 10:01 am    Post subject: Reply with quote

In Osaka city the pay went up dramatically when they kicked out the dispatchers - 305k a month, for 12 full months a year. A friend who worked there ran up against the 3 year limit, and took a direct hire elsewhere for 240ish.

In general for haken companies, they take 30% of the fee leaving you with 70%. (the haken has to pay for insurance, transportation, holidays, plus their own staff). The real scam is insurance - it is around 9% of your salary, so if they don't pay it, they save a ton of money. (not sure about ALT dispatchers, but I assume the percentages are roughly similar).
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Black_Beer_Man



Joined: 26 Mar 2013
Posts: 453
Location: Yokohama

PostPosted: Mon Sep 26, 2016 12:59 pm    Post subject: Reply with quote

scrying wrote:
Black_Beer_Man wrote:
Does anyone have any idea how much of the original amount of an ALT's salary the dispatch company pockets?

10%? 20%? 30%?

Depends on the city, but generally 25% and up. You can actually look up the contract as a matter of public record (no, really. General Union did it while looking at Interac's dealings in Chubu).

Black_Beer_Man wrote:
A friend of mine is a direct hire at a public school. He is paid 5500 yen per class, but that's on a part-time basis and he says that his hours have been decreasing over the years as he is seeing more and more JET teachers move into ALT positions in his schools.


More JETs? I'd be surprised. Despite the lip service, I don't think they've actually increased that budget yet (though supposedly that's coming.) Smaller cities are leaning more and more towards direct hires though, citing dissatisfaction with dispatchers and a greater desire to have control over the process. Worked out wonderfully for me, as I was able to snag one such deal in Aichi.


Yeah. More JETs. He also told me that the JET teacher get 300,000 yen a month for full-time.

Wow! Dispatch companies pocketing 25% of ALTs' salaries. That's a lot. I guess the owners of these companies must be living the good life to say the least.
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Shakey



Joined: 29 Aug 2014
Posts: 199

PostPosted: Wed Sep 28, 2016 1:57 am    Post subject: Reply with quote

Inflames wrote:
In Osaka city the pay went up dramatically when they kicked out the dispatchers - 305k a month, for 12 full months a year. A friend who worked there ran up against the 3 year limit, and took a direct hire elsewhere for 240ish.


In the late 1990s, I knew a Canadian couple who were both direct hires by a BoE in Saitama. They told me that they started at 350,000 a month with housing included. At that time, direct hires were still common.

Things sure have changed.
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Shakey



Joined: 29 Aug 2014
Posts: 199

PostPosted: Wed Sep 28, 2016 2:02 am    Post subject: Reply with quote

Black_Beer_Man wrote:
Wow! Dispatch companies pocketing 25% of ALTs' salaries. That's a lot. I guess the owners of these companies must be living the good life to say the least.


Years ago, I knew a Berlitz head teacher who told me that they charged students about 8,000 Yen per-lesson. However, Berlitz only paid teachers about 1,800 Yen per-lesson. 6,200 went to Berlitz. So yeah, these companies take a huge cut.
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Inflames



Joined: 02 Apr 2006
Posts: 486

PostPosted: Thu Oct 06, 2016 10:18 am    Post subject: Reply with quote

Black_Beer_Man wrote:

Wow! Dispatch companies pocketing 25% of ALTs' salaries. That's a lot. I guess the owners of these companies must be living the good life to say the least.


That is simply talking about part of the money. With it, dispatch companies generally pay transportation and holidays. They have to pay admin staff, rent and associated expenses. The big thing that increases profits is not paying shakai hoken.
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Black_Beer_Man



Joined: 26 Mar 2013
Posts: 453
Location: Yokohama

PostPosted: Thu Oct 06, 2016 3:53 pm    Post subject: Reply with quote

inflames,

Dispatch companies also send their staff to your public school to do observations which means they pick apart your lesson and tell you it was awful (when it wasn't and they probably couldn't do a much better job themselves).

This serves two purposes:

1) Keep the ALT feeling insecure so that he / she works hard and worries about keeping his / her job.

2) Shows the public school the "added value" of hiring a dispatch company to deal with the troublesome gaijin. And that the dispatch company is making sure the ALT delivers only the highest quality lessons.

In most cases, it's a scam. An ALT is not supposed to lead the lessons anyway, it's the Japanese English teacher.

The ALT should be consulting the Japanese English teacher directly for guidance - not the dispatch company. Dispatch companies are meddlesome and just complicate the situation.

Two is company, but three is a crowd applies aptly here.
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scrying



Joined: 14 Nov 2004
Posts: 27
Location: Nagoya Japan

PostPosted: Fri Oct 07, 2016 4:18 am    Post subject: Reply with quote

Black_Beer_Man wrote:
inflames,


This serves two purposes:

1) Keep the ALT feeling insecure so that he / she works hard and worries about keeping his / her job.

2) Shows the public school the "added value" of hiring a dispatch company to deal with the troublesome gaijin. And that the dispatch company is making sure the ALT delivers only the highest quality lessons.


Seconded and experienced. Observations by dispatch companies are laughably pointless, and essentially just customer service show pony trials.

Arguably, one could say the same about BoE observations, but the ones I've had in my current situation tend to have a lot more useful feedback (as well as being performed by actual educators and education admin)


Aside from a small argument in favor of their recruiting ability/administrative experience (something that, with relatively little effort, could easily be handled by a city itself, at likely lower cost), there is realistically no function that a ALT dispatcher provides that justifies their existence other than making money by taking it from workers. It's a parasitic enterprise, pure and simple.
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Shakey



Joined: 29 Aug 2014
Posts: 199

PostPosted: Fri Oct 07, 2016 9:12 am    Post subject: Reply with quote

I sure hope that the wannabes back in Canada, Australia, UK and the U.S. are reading the comments left here by Black_Beer_Man, Inflames and scrying.
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