Korean Job Discussion Forums

[big_fella1]

http://www.smh.com.au/news/world/nova-collapse-feared/2007/10/05/1191091359494.html

http://www.news.com.au/couriermail/story/0,20797,22508420-3102,00.html?from=public_rss

http://search.japantimes.co.jp/cgi-bin/nn20070921a1.html

Thought this might be of interest as there could be a flood of foreigners arriving from Japan by ferry. Not all teachers in Japan save money apparently.

Nova has had big problems and the low yen can't be helping recruitment but is this the beginning of a major change in the foreign language education business and will this affect us in Korea?

[Dome Vans]

Financial strains

Indications of an impending financial crisis stemmed from a rapid increase in refund claims that total nearly 5,000,000,000 Yen nationwide.[67] An August 21, 2007, article in the Toyo Keizai, Nova was described as repeatedly delaying payment to business partners and banks, falling into arrears for printing costs at the end of July, asking an ad agency to defer a payment.[68] Nova's 2008 first quarter financials showed a loss of 4,300,000,000 Yen, and a 19% decrease in sales compared to the previous year period and overall 19% decrease in reoccurring profit.[69] Nova cited a decrease in the number of students and deterioration of its image as an explanation.[70][71] The Asahi Shinbun reported on September 11, 2007, that Nova had made a request to an asset management consulting company, requiring them to return an outstanding amount of 8 million shares that were loaned to them on July 30th, 2007. Nova had previously used the asset management consulting company to arrange short term financing with an 11 million share stock loan on July 29, 2007.[72] BNP Paribas had obtained the 8 million shares from a 3rd party on July 30, selling them on September 4th.[73] Commenting on its temporary possession of Nova shares, BNP said it had been the result of the asset management consulting company exercising its option.[74]

[edit] Delayed wages

A recent decline in the stock price following the release of Nova's 2008 fiscal year first quarter financials[69] was preceded by news of a delay in payment of wages and bonuses to some employees.[75] Nova explained that the delay in the monthly wages was due to change in its payment system and personnel management and accounting sections that had not been completed on time and that the summer bonus delay until October was a business necessity that required employee co-operation. [67]

On September 14, 2007, Nova delayed wages to many of its teaching staff. Many teachers who had previously resigned, are still waiting for salary payments from the month of July.[citation needed] The NAMBU Foreign Workers Caucus in Tokyo estimated that up to 3000 had not received their salaries on time. According the the Sydney Morning Herald, some teachers said they were owed thousands of dollars and others posted messages expressing the intent to quit. Nova President Nozomu Sahashi issued a statement saying it had not been possible to complete all the necessary operations to deposit instructor salaries'.[76] As a result of Nova delaying the payment of salaries, the Sankei Shimbun reported that insecurity spread amongst both staff and students surrounding the possible closures of Nova branches. On September 20, 2007, one teacher who demonstrated outside of Nova's office in Osaka was quoted as saying 'I've already heard about the possible closures of 200~300 branches across the country. Nova no longer has the ability to pay the salaries of teachers and staff'.[77] By September 25, 2007, the cash flow problems had not improved and Nova President Nozomu Sahahshi mortgaged 9 million shares of company stock (which included 1.18 million of his own personal shares) for the purposes of raising working capitol. Nova Corp. said that they were not involved in planning the transaction. [78]

[edit] Recent lawsuits

The parents of a Nova employee who committed suicide in 2004 filed a suit against the company on August 31, 2007. Their son, aged 28, at the time was employed by Nova to design and supervise the construction of new classrooms. During that period Nova engaged in a rapid expansion meant to increase the number of Nova branches by 300 in an attempt to reach 1000 total. The parents suit alleges that their son was required by Nova to work up to 80 hours of overtime in one month, and even through the night on seven occasions despite his inexperience. At one point he had requested to be relieved but was persuaded to stay, eventually leading to overwhelming stress shortly before his suicide. [79]

On September 3rd, 2007, an Osaka woman filed suit against Nova over a refund related issue. Unlike previous complaints about how Nova adjusted the value of unused lesson points which the Japanese Superme Court ruled on in June of 2007, this suit contested Nova's decision not to refund lesson points that were extended after the woman purchased additional points.[80] The woman claims that while Nova explained that her unused points, worth approximately 400,000 yen, from the first contract would carry over after signing a new contract, she was not told that they could not be refunded if she chose to cancel.

http://en.wikipedia.org/wiki/Nova_(English_school_in_Japan)#Delayed_wages

Will be interesting to see how this one goes. It looks like a company that has been badly run for a number of years due to bad decisions and executive greediness. Feel sorry for the teachers caught up in it.

[pastis]

I keep hearing conflicting reports on it...

Anyway, if they are going down, then good, and good riddance. They are the bloated, festering cancer of the eikaiwa industry and should have been brought down years ago.

[mindmetoo]

Doesn't NOVA want its teachers to wear suits?