Let's Japan.org Debunking Eikaiwa and Ramblings in Japan

It doesn't look like the lawsuit will end any time soon:

The current focus of negotiations is the amount of notice union members should give the company ahead of industrial action. Initially, Berlitz Japan offered to drop their lawsuit if teachers gave a week's notice before striking. Begunto proposed five minutes. Since teachers typically only learn the next day's schedule the night before, the judge instructed the company to come up with a better offer.

Asked how much notice unions legally have to give before striking, Langley replied, "None. Zero. That's one of the beauties of a strike: You just strike."

In the latest round of talks held Thursday, Berlitz Japan requested contract teachers give strike notification by 3 p.m. the day before, and per-lesson teachers by 5 p.m. Begunto pointed out to the judge that per-lesson teachers don't receive their schedule until 6 p.m. the day before. Union executives have taken the offer back to members for consideration

That's quite the chutzpah from Berlitz. I don't know why they want advance notice of industrial reaction when it hasn't stopped them from screwing over their teachers:

One, who didn't want to be named, received word of his dismissal just before shipping out to Afghanistan as a U.S. Army reservist at the end of July 2009. Berlitz Japan had allowed the teacher to take unpaid leave for military duty several times before the strike. But after being the only teacher at his Yokohama branch to walk out, he began getting complaints from students.

According to Begunto members, after being ordered to deploy to Afghanistan, Berlitz Japan told the teacher he could take a leave of absence of less than a year, and that he'd have to quit if he needed more than a year. Two days before he left for Afghanistan the company fired him. According to the dismissal letter, his performance was subpar and was hurting the company's image.

Take unpaid leave and then get summarily fired anyway for reasons which you cannot defend since you are conveniently unable to communicate with the company. The same thing applies if you become seriously ill:

Another of the teachers named in the suit, Catherine Campbell, was fired earlier this month after taking too long to recover from late-stage breast cancer cancer [sic]. In June 2009, Campbell took a year of unpaid leave to undergo chemotherapy and radiation treatment. Because Berlitz Japan failed to enroll Campbell in the shakai hoken health insurance scheme, she was unable to receive the two-thirds wage coverage it provides and had to live with her parents in Canada during treatment. The company denied Campbell's request to extend her leave from June to Sept. 2010 and fired her for failing to return to work.

Berlitz Japan work rules allow for leave-of-absence extensions where the company deems it necessary.

Never mind that this is unpaid leave, it's Catherine's fault for not healing faster. Her situation is also a good example of why it's important to pay into a health insurance scheme. She would not have been financially crippled had she been enrolled in the company's shakai hoken health insurance plan. Insurance is always a waste of money until you need it, eh?

As the article points out, the heart of the dispute is a battle for a wage increase. The teachers went on strike for a 4.6% increase after going without a raise for 16 years while Berlitz and its parent company, Benesse, enjoyed record profits.

One of the reasons why conditions are so bad in eikaiwa is because the schools have been allowed to get away with their shady practices and abuse for so long. Part of it has to do with the lack of regulation of the industry, but another reason is that few teachers have chosen to stand up to their employers. It's always been easier to jump ship and find something better. But with Japan's moribund economy, those days are over. There are few good options left for teachers: 1) Don't teach English in Japan (don't bother with it in the first place) or 2) Don't be a pushover in the first place.

As I've said before, this is worth fighting for. You can't let yourself be pushed around. The alternative is to let eikaiwa schools forever stomp on you.

In other news, Louis Carlet is the executive president of Zenkoku Ippan (Tozen):

On Dec. 3, 2008, Berlitz Japan claimed the strike was illegal and sued for a total of ¥110 million in damages. Named in the suit were the five teachers volunteering as Begunto executives, as well as two union officials: the president of the National Union of General Workers Tokyo Nambu, Yujiro Hiraga , and Carlet, former NUGW case officer for Begunto and currently executive president of Zenkoku Ippan Tokyo General Union (Tozen).

Hoofin' has the details on how that happened.

UPDATE: The author of the article, James McCrostie, was kind enough to email me and offer a few extra morsels that didn't make the editor's cut:

• To add insult to Catherine Campbell's fight with cancer, Benesse supports the Pink Ribbon campaign through their health insurance union （ベネッセ健康保険組合） [PDF, see p.3].

• Union members told James McCrostie in an interview that the fight against Begunto really seems to be part of a wider policy of union busting at Benesse Corp. In April, Simul International fired the president of their union, someone with 12 years experience at the company. Also, Berlitz threw away 15 years of established practices for collective bargaining in English. Two lawyers from the law firm suing the Berlitz teachers now run Berlitz's side of negotiations in Japanese and demand the union provide an interpreter. During negotiations, Berlitz managers ask the lawyers for permission before they speak. The law firm in question is famous in Japanese legal circles for union busting.

Stay classy, Berlitz.

UPDATE 7/27: Something just didn't sit right with me after re-reading the article and it's the union's case with the Army Reservist. It's a weak case, especially when it looks like Berlitz was being reasonable in granting several unpaid leaves. Expecting to be able to take multiple unpaid leaves and still keep your job is a stretch in Japan. It's also difficult to see how the union could pin his dismissal on him being the only one in his school to strike. It seems like a moot point to argue when all Berlitz has to do is point out that the teacher has been away from work for extended periods of time.

This got buried in my stack of stuff to do, but why not haul out the rotten corpse that is Fortress Japan for another round of flogging? To recap, the Consumer Affairs Agency shut down Fortress Japan in February for six months over its coercive methods of signing up new students. The agency's report [PDF] contains five case studies that illustrate how Fortress Japan did business.

You are probably already familiar with Fortress Japan's sleazy conduct, but the stupidity of its victims also shines through. Why did they sign? Where they mentally worn down to the point of being unable to leave the room or were they scared into signing? Fortress Japan's suspension ends August 18 and I wonder if they will return to their dirty tricks if they return at all. Here's a summary of the case studies.

CASE 1

In March 2009, Employee Z from Fortress Japan stopped Consumer A, who was in the midst of looking for a job, in a train station and asked if he would answer a questionnaire. He agreed.

Days later, Z called A on the mobile phone number he left on the questionnaire. She identified herself as Z from Global Trinity and asked A if remembered the questionnaire from the other day. For the next 20 minutes, she told him about an information session that would be useful in A's job, saying that it included one-on-one counseling, that it was popular, and that seats would fill up quickly. A was interested and said he would attend the session at Fortress Japan.

A went to Fortress Japan at the appointed time and date, where Z led him into small room. Using newspaper clippings, Z proceeded to explain to A the importance of being able to speak English and how it would benefit him in a severe the job market. Z also produced a pamphlet which she used to introduce Global Trinity to A, explaining that it offered employment skills and personal development seminars in order to succeed in finding a job as well as English lessons that A could take at any time without any restrictions.

A, realizing that two and half hours had elapsed and that Z wasn't about to finish, informed Z that he was leaving. Z replied that she was almost done and to wait a bit longer. On hearing the exchange, Z's boss jumped in to tell A that Z's presentation was almost finished. So, A let Z continue. A asked how much English lessons were after thinking that studying English would give him an edge in his job search. Z replied that she would tell him the next time they met. Wanting to know how much lessons cost, he arranged for another meeting.

Days after the first meeting, A returned to Fortress Japan where Z led him to the same small room and proceeded to talk about importance of English and the lesson fees. Z informed A that it cost 570,000 yen for 10 months and that A could take any number of lessons at any time he wanted in any course offered, all at the same price. On hearing the cost, A informed Z that he wanted to talk things over with his parents since he had no savings and couldn't carry a loan by working part-time. Z told him that A could increase his hours at his part-time job. A replied that getting more hours would be difficult, to which Z replied that he would be a failure in life and accomplish nothing if he didn't start now, and that he should work more hours. Z also pressured A into making the decision himself by saying that A was an adult and didn't need his parents to make decisions for him. Just then, Z's boss, Y, appeared and told A the reason he couldn't decide was because he didn't have the resolve and was weak. A signed a contract, thinking that they would not let him leave unless he did so.

A later took a level check at a Global Trinity school and was told he was at Level 1. Just as he was about to start his studies based on the curriculum for his level, he was unable to book a lesson three out of four times he tried. Moreover, A found that there were times when the lesson schedule that was released two weeks in advance of classes was suddenly released only 3 days in advance, making it difficult for A to book a class. He was never able to take lessons as he intended due the large number of Level 1 students all trying to make lessons reservations.

CASE 2

In April 2009, Employee X from Fortress Japan stopped Consumer B at a train station while he was on his way to university and asked him if he would fill out a questionnaire about English. B agreed.

That night, X called B on the mobile phone number he gave on the questionnaire. She identified herself as X from Global Trinity and thanked B for his help with the questionnaire at the train station earlier that day. She asked about B's university life and search for a job, and informed him of a popular English conversation information session that was filling up fast. Since B was aware how important being able to speak English was, he made an appointment with X for the next day.

B met X at the train station closest to Fortress Japan, where X escorted him to the building where Fortress Japan had an office. B was led into a small, partitioned room on a different floor than Fortress Japan. X then began a one-way spiel and informed B that Fortress Japan operated an English conversation school and job seminars, and that it had a lot of good things to offer. X also informed B that taking Fortress Japan's English lessons and job seminars would make him a go-getter, instilling within him assertiveness, responsibility, and ambition. X asked B to come tomorrow for a more detailed explanation about the English lessons. Since B was interested in studying English, he agreed to meet the next day.

The next day, B went to the same place to hear more about the English lessons. As with the previous day, X told him about the lessons and job seminars. Interested in signing a contract, B asked about how much it all cost. X didn't answer his question and repeatedly told B that the English lessons were a great opportunity for busy university students such as himself as he could take lessons any time he wanted. B thought that taking the classes would change him. After speaking for nearly four hours, X informed B that she would discuss lesson fees the next time they met and that he should come again tomorrow. Although B was busy that day, he made an appointment for another day.

Several days later, B met with X to talk about lesson fees. As with previous meetings, X again repeatedly told B of the importance of English and job seminars, telling him that English lessons were a great opportunity for busy university students such as himself since he could take lessons any time he wanted. Concerned about how much everything cost, he asked about the price. X told him it was 500,000 yen for 10 months and that he could make a lump sum payment or pay in 24 monthly installments of 24,000 yen by credit card. Knowing it would be difficult to make monthly payments of 24,000 yen and go to school at the same time, B asked for some time to think things over. X pressured B into making a decision by telling him things such as, "500,000 may seem expensive, but it's an investment in yourself. It's cheap when you consider you'll be able to speak English," and "You can decide on your own. You're older than 20." X pressured B for more than two hours before he finally signed a contract.

After signing the contract and going to the school to find out if he could take lessons any time he wanted to, the receptionist told him that all lessons had to be booked and that there was a curriculum for each particular language level. B realized that he would not be able to take lessons at a time of his choosing.

When B tried to book lessons in the fee time he had in between his university studies, classes were filled quickly and he was only able to make a reservation about half the time he tried.

CASE 3

In the Spring of 2008, University Student C, who had filled out a questionnaire on English conversation while on his way to school, received a call on his mobile phone from an unknown number but decided not to answer.

In May 2009, he received a call on his mobile phone and answered it. The person on the line was W from Fortress Japan. She introduced herself, told C that he had filled in a questionnaire at the train station a year ago, and asked him how his studies were progressing. She engaged in small talk while asking him about his search for a job, and then asked if he was interested in visiting an English conversation school that would help him with his job hunt. C was interested in studying English and arranged for a meeting at the school. C went to the school and was taken to a room. There, W informed him that "companies demand assertiveness, responsibility, and go-getters," and "English will help your search for a job. You need it in today's society." W made C anxious by telling him he wouldn't make it in society without being able to speak English or that he would earn less if he could not speak English. Since W didn't tell C about the English conversation school, C made an appointment to meet the next day.

C went to Fortress Japan the next day and after W reminded him again of the importance of English, told him that while all lessons have to be reserved, he could make a reservation without any restrictions at any time and that he was free to choose the day of the lesson. C liked the idea of being able to take lessons whenever he wanted but when he asked about the price, W told him it was 500,000 yen for 10 months, or monthly payments of 24,000 yen by consumer credit loan, and that this was considerably cheaper than other English conversation schools. C replied that a 500,000 loan was out of the question. W ignored C's rejection, telling him it wouldn't be a problem since he had a part-time job. Despite his job, he was a student with an unstable income. C said no and expressed his desire to go home and think it over. W refused to let him go, saying things like he would "regret it if he didn't decide now," or that she needed a decision right now or "You're a failure as a working adult." Wanting to leave as quickly as he could, C signed a contract, believing he had no other choice.

When C tried to book a lesson, he found he was unable to since the class schedule for the next half month was released two weeks in advance. The school was flooded with reservations. Moreover, C's university and part-time job schedules were set a month in advance, and when he tried to make a reservation that fit his schedule, he would only be able to fit in lessons once or twice a week. C tried more than 20 times to book a lesson but could never get the dates he wanted. Ultimately, he was never able to take more than half of the lessons he intended as they were all booked.

CASE 4

In June 2009, Consumer D was stopped in front of the entrance of his university by V, who introduced herself as being from Trinity, an English conversation school and job hunting juku. She asked D if he would take 30 seconds and fill out a questionnaire. V told D that Trinity was holding a free job search seminar and that he should attend. D was worried about his job prospects and decided that it would be a good idea to attend.

Days later, D met V at the train station closest to Trinity, where V escorted him to a small booth on the 9th floor of the building that Trinity occupied. V used newspaper clippings to illustrate how bad the job market was while explaining to D for three hours how difficult it would be to find a job and that companies want people who can speak English and are good communicators. D understood the need for personal development but didn't hear anything about how much everything cost, so he asked about the price. V replied that she would talk about prices during the second meeting, but D didn't seem like a university student who would have problems with money, so he should come to the next meeting tomorrow. D decided that he would make up his mind after learning about the price and promised to attend the second meeting the next day.

When D showed up at the appointed time the next day, V introduced him to U, who would be giving the presentation that day. U informed D that while the English lessons were by reservation-only, he could take as many lessons as he wanted during the 8-month course. U then spoke about the price of the lessons, informing D that it cost 650,000 yen, or under 30,000 yen a month in 24 monthly consumer loan payments. D thought the course was expensive and clearly refused to sign a contract as he wanted time to think it over. U, looking disappointed, told him that talking to his parents was pointless since they'd be the ones footing the bill and that it was too bad that D couldn't make the decision himself. When D explained that he had no choice but to talk with his parents since he probably wouldn't be able to get more hours at his part-time job, U replied that he should take responsibility for signing the contract without his parents input. The back and forth continued for some time. Finally, D decided to work more hours at his job and said he would join the school.

CASE 5

In August 2009, Consumer E was passing through a train station during his search for a job when he was stopped by T, who asked him if he would fill out a questionnaire about his job hunt. T asked E if he was interested in studying English and whether he felt that it was important. E thought both were important and filled out the questionnaire, leaving his name and phone number on the form.

That evening, T called E using the information on the questionnaire and introduced herself as T from Hearts. She then asked E about university life and his search for a job, and asked if he was interested in attending a free job seminar. E had just started looking for a job and thought the seminar would be crowded with people but would be worth attending for the information. He agreed to attend.

Days later, E went to the train station where he first met T. S escorted him to a booth and told him that today was decision day. E replied with a vague, "I see" although his intention was to listen to the spiel and go home without joining Hearts.

S started her presentation by saying that with the Hearts program, E would have to work part-time and earn money on his own. When E replied that he didn't have a part-time job, didn't have time for a job, and didn't intend on getting one, S attacked him for not having a job as it would hurt his job prospects. She said things like, "Not being able to work and go to school at the same time gives a bad impression because society demands that you do various things at the same time," and " Businesses don't like to hire people dependent on their parents because they've had to deal with complaints about their child's employment environment." After some time, S asked E if he had any questions. E replied that Hearts had something to offer but wasn't sure if he wanted to study there. S asked why he was confused, to which E replied, "I have university, seminars, and my own job hunting to worry about so doing a part-time job and studying at Hearts is impossible." S told him that he could do both.

Since the discussion was going nowhere, E asked to see some information about prices. S showed him a chart that said that it would cost 20,000 yen a month, a price that even a university student could afford it while working part-time. E felt that 20,000 a month was doable but the chart that S showed him listed a lump sum price of 500,000 yen payable in monthly installments of 20,000 yen over three years. E pointed out that at 20,000 yen a month, the cost would be more than 600,000 yen. He didn't have the money or time for a part time job, let alone study at Hearts. S tried to persuade him by saying the money was an investment in himself which would yield huge returns and that it was important to work and do something for yourself while he was still young. Again, E declined, "It all sounds good but I have my doubts about some things and am not quite convinced." S asked why he was confused again, to which E replied, " I'm not interested. I'm surrounded by highly-motivated friends at university who are more interesting." S countered by saying that there were plenty of people like that at Hearts and that relying on those close by wasn't a good thing. It was better for him to create his own environment. E thought the discussion was never going to end, so he made himself clear, "I'm really not interested right now."

S, however, pressed on saying, "You think like an old man," "All you think about is risk, not the challenge. You're young but indecisive. If you fail, it's better to do so while in university. It's better to do something and regret it than regret not doing something," and "You can take the lessons when your schedule allows it and you can take as many as you want at no extra charge." E was firm, "The risk is considerable if I fail given the large amount of money involved and other things may take a backseat if I start studying at Hearts. There are other ways than Hearts to grow personally, so I can't make a decision right now." S was persistent in maintaining that joining Hearts was the only way to succeed despite E's many protests, "You're being evasive. You're saying that activities beyond money, your schedule, and Hearts are more important so you can avoid having to make a decision." E kept refusing for over three hours but S wouldn't take no for an answer, so E decided to sign the contract.

It was only when E went to take an English level check that he learned the truth: He had to book lessons, but there was only about one class a week for a given curriculum, he could only make one reservation at a time, and he had to go to the school in person to book a lesson for the same day.

Comedy gold!

Page launched an unfair dismissal claim against GEOS, which comes under the umbrella of the GEOS Corporation founded by Japanese businessman Tsuneo Kusunoki.

But the company responded by claiming that Page "accepted understanding of the 'Japanese way' of doing business". They went on to say he was used to Kusunoki "ranting", "berating" and "humiliating" people "so this was nothing new".

But the Employment Relations Authority said the company's failings were "fundamental and profound".

"Ranting," "berating," "humiliating," "nothing new." Man loses job because he didn't make enough money for the company, so GEOS counters with he was used to abusive behavior so that makes it OK. That's so pathetic it's laughable. One of the biggest failures of the large schools is their inability to properly educate, inform, and train their employees. Orientation generally consists of lots of don'ts--don't bother the manager, don't be late, don't cause trouble. Just show up and teach. Despite the instructors being the product the schools are selling, they are treated with contempt and expected to obey without question orders from head office. Instructors may be employees, but they are transient ones, whose only use to help line the pockets of the school they work for.

This dispute in New Zealand gets to the heart of the shake up in eikaiwa: the rot in management. There are two things that have characterized eikaiwa for a long time. One is the bicycle business model where the company must keep pedaling (collecting revenue) or else it will fall over. It worked for Nova and GEOS, but the moment that cash flow is interrupted, things go downhill very quickly. Then there are the autocratic owner/presidents. With Nozomu Sahashi, there was his plush penthouse-cum-office that would make Hugh Heffner jealous, plus his continued assertions that he did nothing wrong when he pilfered an employee. Kusunoki was more of the same, constantly demanding more and more from his staff and berating them for not meeting their monthly targets. When GEOS' Australia schools closed, he issued a half-assed apology that the closures there wouldn't affect operations in Japan. GEOS went bankrupt shortly after that announcement.

To use "the Japanese way" as an excuse just discredits eikaiwa even more. Dishonesty and bullying are the Japanese way? No wonder the major schools are in trouble. They can't fail fast enough. The major eikaiwas have never been about learning a language; they've always been about making money for their owners.

Tuesday's Lifeline column in The Japan Times featured a situation that illustrated just how fly-by-night teaching English in Japan can be:

Reader TS writes: "I return to the U.S. next week and I was supposed to receive my final pay check from a really bad ALT company . . . last week, but did not receive payment. I've called them but the secretaries say that the people in charge are not in the office. I called my direct contact and he has yet to call me back.

"I've read on the Internet that with your last pay check this company will try and avoid paying you since the pay date is so close to when you have to return to your home country, and that when you return they will try and avoid all contact with you. I'm going to keep calling them, but somehow I worry that it is futile."

The article goes on to explain the hoops you have to jump through to get paid: send a letter through registered mail and wait for a reply. If that doesn't work, the next step is to go to a Labor Standards Office and have them call your employer on your behalf. Barring that, you may then need to hire a lawyer.

One crucial piece of information missing from the article is the name of the "really bad ALT company." While knowing what your options are when it comes to making sure you get paid is inportant, an ounce of prevention--knowing who the shyster schools are so you can avoid them--would save teachers a lot of grief. Fortunately, I'm told by a reader that the offending school is Japan Advanced Labour Staff Services (JALSS). You can read about them here and here.

Using the poor economy as an excuse to not pay staff is no excuse at all. The fact that non-payment appears to be common in eikaiwa should send teachers, prospective and veteran alike, running for the door. The moral of the story is this: If you quit your job, don't make any plans to immediately return home if you want to see your final paycheck.

When Nova went bankrupt in 2007, two central themes of the collapse were the large pre-payment of lesson fees and the inability of Nova to provide refunds. The fallout was so large, the media dubbed Nova's collapse as the largest consumer wipe-out since the end of the Pacific War.

In the nearly three years following the the end of Nova, you'd think that things have changed--that people wised up to the pressure sales tactics and that the schools themselves took steps to avoid a fate like Nova's. Apparently nothing has changed.

A 22-year-old female student at a closing Geos school in Sangenjaya in Setagaya Ward, Tokyo, says she just paid her entire yearly tuition last month. She had previously paid her tuition on a monthly basis. However, around autumn of last year, the school started repeatedly recommending she pay her yearly tuition in a lump sum.

The student's mother is a former student at English conversation school chain NOVA, which also went bankrupt. She warned her daughter that it was suspicious that the school was trying to get her to pay so much money up front. The student says she hesitated to pay until the last minute.

"If they recommended the lump payment while knowing they would be going bankrupt, it's depressing," she said sadly.

Since no refunds will be offered, the student is considering continuing at the nearest school that G.Communication will take over, but said, "It's far from my home, and I'm worried that a new teacher wouldn't teach in the same way as the old one."

The Yomiuri shimbun also illustrates some of its own hard luck stories.

A housewife in Chofu talks about how she lost money at Nova and now GEOS. She paid a year's worth of lesson fees up front to send her son to GEOS, but now wonders what will happen to the money and the lessons.

A young woman going to the Sangenchaya school in Setagaya ward, Tokyo recently paid 25 thousands yen in March for her lessons. She regrets having given in to GEOS's pressure sales. A young man at the Jiyugaoka school paid over 300 thousand yen in February for his lessons. While he was aware of what happened with the Nova fiasco, he didn't figure the same thing would happen at GEOS.

The same is happening with the instructors, too. From the same Mainichi article:

Elsewhere, at a school in Nara that is scheduled to close, a 23-year-old American teacher who had come to find out the latest news complained angrily, "At yesterday's meeting, the school manager told us that Geos's financial condition was fine, but this morning we got an e-mail about the bankruptcy. We were lied to. If I don't get paid, I can't afford a flight back home."

The Yomiuri also reports that G.communication isn't guaranteeing that salaries will be paid.

Naturally, a bit of panic is setting in. GEOS set up a toll free phone number to address the concerns of its customers, but according to the Yomiuri shimbun, nobody is picking up.

Instead, customers are greeted by a recorded message. Nobody is answering the number on the GEOS website hasn't worked either. That's left the Consumer Affairs Center to be flooded with complaints about not being able to get in touch with GEOS.

The Yomiuri did manage to track down a few staff members at GEOS's Shibuya head office, but they all said that they knew nothing. Apart from not being able to get a hold of anybody at GEOS, the Consumer Affairs Center has been fielding a lot of calls from students wondering if they'll be able to get a refund.

The Asahi shimbun reports that it's Nova all over again. With 99 schools slated for closure and 7,800 students affected, G.communication says it won't be offering cash refunds. Instead, the Mainichi shimbun reports that students have three options:

1. Continue studying at the nearest GEOS
2. Continue studying at the nearest Nova.
3. Take lessons using the old Nova Ginganet videophone system. It's not clear whether students would be subject to any extra fees with this option.

While it doesn't look like the GEOS bankruptcy will descend into the chaos of the Nova collapse at this point, one thing is clear: the lessons of the Nova collapse have been forgotten or ignored.

Add GEOS to the list of eikaiwas that have gone bankrupt. GEOS filed for bankruptcy today, temporarily closing its schools until the 23rd when G.communication, the company that picked up the scraps when NOVA went bankrupt in 2007, will take over part of GEOS's business.

GEOS will close 99 schools (PDF), while keeping 170 schools and 66 GEOS kids (PDF) schools in operation.

In GEOS's own press release (PDF), it cited the recession and the collapse of NOVA in 2007 as significant factor that harmed its business, leaving the company with debts totaling 7.5 billion yen as of the end of March this year.

And that's the end of GEOS. Not being privvy to its finances, it was next to impossible to say when the end would come, although the cynic in me wondered how the closure of its Australia schools could not affect business.

After the collapse of NOVA, the fall of GEOS is yet another point on the graph of eikaiwa's long decline. That g.communication will take over GEOS comes as a bit of surprise. Given the poor condition of the English language market, how much blood do they think they can realistically extract from the eikaiwa stone?

Whoever wrote The ALT Scam on the Fukuoka General Union blog is probably feeling vindicated right now. The Mainichi Daily News reports:

Public schools here [Kashiwa, Chiba] have been unable to start their native speaker-taught English classes this school year after the city's board of education was accused of violating labor laws with foreign language teachers.

According to the Kashiwa Municipal Board of Education, it has been instructed by the local labor office to change its labor relationship with foreign assistant language teachers (ALTs) in the city's elementary and junior high schools after it engaged in illegal employment practices.

The local education board entrusted part of its English curriculum for primary and secondary school students to a Tokyo-based staffing agency between 2007 and 2009, and a total of 23 foreign teachers belonging to the agency worked as ALTs at 61 local public elementary and junior high schools during this period. Their contracts expired at the end of last month.

The article goes on to say that instructors were working as temporary employees under the guise of subcontractors, and demanding that their contracts be extended. When they complained to the labour board, the board investigated and found that the instructors were under the direct supervision of the schools they worked at even though they were working under dispatch contracts. The problem with this kind of arrangement is that:

Under the current law, companies and other business operators must offer a direct contract to their temporary workers after they have completed the first three years of work. Moreover, the Ministry of Health, Labor and Welfare's labor guidelines require a minimum three-month interval before the two parties enter into another temporary contract.

The city's board of education had planned to terminate its English class teacher outsourcing contract and employ temporary English teachers directly starting this April. However, as the labor office judged that the education board had already forced its contracted foreign teachers to work as normal temporary staff, it became impossible for the city to renew the contracts right away, in accordance with the ministry guidelines prohibiting consecutive temporary contracts of over three years.

The BOE has announced that it will comply with the labour board's order, although English classes have been suspended until July. This is a good first step in breaking what I called "the terrible triangle" in ALT teaching jobs. The complaints to labour boards are having an effect.

The Yomiuri Shimbun reports that the charge of aggravated breach of trust leveled by the Nova administrators against former Nova president, Nozomu Sahashi, has been dismissed.

According to the report, the Osaka District Public Prosecutors dropped the case due to insufficient evidence. Although Sahashi admitted to using the telecommunication company (Ginganet) he owned to sell massive quantities of unwanted videophones to Nova, Public Prosecutors deemed that there was no intent to cause harm as Sahashi never pocketed any of the money from the sale of the videophones.

Sahashi is still appealing his embezzlement conviction.

Yomiuri Shimbun

特別背任容疑で告発のＮＯＶＡ元社長、不起訴

英会話学校「ＮＯＶＡ」（大阪市、破産手続き中）に約２１億円の損害を与えたとして、破産管財人から特別背任容疑で告発された同社元社長・猿橋(さはし)望被告（５８）（業務上横領罪で有罪判決を受け、控訴中）について、大阪地検特捜部は不起訴（嫌疑不十分）とした。３月３１日付。

猿橋被告は、自ら実質経営する通信事業会社から、不要なテレビ電話機を、ＮＯＶＡに大量に仕入れさせて損害を与えたなどとして告発されたが、特捜部は猿橋被告に資金が渡っておらず、損害を与える目的もなかったと判断した。

（2010年4月1日11時15分 読売新聞）

The Fukuoka General Union has a long read titled The ALT Scam that points out the problems with BOEs outsourcing ALT jobs.

The main points are:

1. ALT jobs have been deemed a "service" so local governments can save money and avoid the management of foreign employees.
2. It is illegal for sub-contracted ALT teachers to work at public schools
3. ALTs/Dispatch companies don't know if they will get the next job/contract
4. Most ALT jobs advertised will not eventuate because they do not exsist and nobody knows if they will eventuate
5. Dispatch companies take big margins and the more they squeeze the ALT the more profit they make
6. Sub-contract ALTs are in reality double taxed losing 5% to consumption tax
7. Dispatch companies make profits from not enrolling ALTs in SH
8. A sub-contract ALT has practically no recourse if the school deems them sub-standard
9. BOEs ignore the Ministry of Education directive to employ ALTs directly
10. The BOE has no way of knowing if the dispatch company is breaking labour laws

Get a cup of your favorite beverage and read it all...

h/t Mogura

This is going to leave a mark:

China's Education Ministry on Sunday warned students considering studying overseas against Australian schools run by the GEOS group after more than 40 Chinese students were left stranded with the group's collapse.

More than 2,300 students in GEOS group schools across Australia were affected after the college closures. The schools were scattered across Sydney, Melbourne, Brisbane, Perth and Cairns.

GEOS is a Japanese company which owns hundreds of colleges around the world. The GEOS group has run out of money for its Australian colleges,according to Australian media reports.

Chinese embassies and consulates in Australia are negotiating with local authorities to settle the issue to safeguard students' legitimate rights.

The Education Ministry has drawn up a recommendation list of nearly 15,000 schools in 33 countries worldwide on its website. The recommended schools are relatively trustworthy and reliable.

Australia has been a preferred destination for overseas education for Indian and Chinese students.

The Australian Bureau of Statistics said the number of Chinese student enrollments was 146,000 by June 2009, up an average annual 16 percent over the past six years.

Remember, Kusunoki has told us that everything is just fine with GEOS.