| Teachers left jobless as Nova folds
By Justin McCurry
THE GUARDIAN, LONDON AND TOKYO
Sunday, Oct 28, 2007, Page 12
|
A pedestrian passes by a Nova language school in Tokyo on Friday.
PHOTO: AFP
| Nearly 1,000 language instructors were left
fearing for their jobs on Friday after Nova, the scandal-ridden owner
of Japan's biggest chain of language schools, closed its doors and
filed for court protection from creditors with debts totaling an
estimated ?43.9 billion (US$384.2 million).
The firm, which has about 900 schools and 418,000 students, built its
success on the back of advertising campaigns promising opportunities
for "international exchange" at schools near railway stations staffed
by native-speaker instructors.
But its troubles began earlier this year when Japan's supreme court
ruled that it had acted illegally by refusing to refund students who
had canceled their contracts.
In June the trade and economy ministry ordered Nova to close some of
its schools after ruling that it had misled students in advertising
campaigns.
The negative publicity led to a dramatic decline in enrolments and left
the school unable to pay thousands of its teachers, some of whom also
face eviction because Nova failed to pay their rent, which is deducted
from their salaries.
|
"This is a serious development that could force many students, instructors and employees to suffer losses."
|
|
Katsuji Yamahara, chairman of the General Union, which represents many Nova employees
|
Nova's 2,000 Japanese staff have not been paid since
July and about 4,000 foreign instructors have not been paid since
September.
One British employee, who works as a trainer, said she and her
boyfriend, who will not be paid until next month in a new job, were
living off the last of their savings and help from their parents.
"Rent and bills are getting difficult to pay," she said.
Another British couple she knows are facing eviction, she added.
The Osaka district court will try to find sponsors to rebuild Nova's
business. Trading in Nova shares was suspended on the JASDAQ securities
exchange in Tokyo, with the shares to be delisted next month.
The General Union, which represents many Nova employees, said the
school's troubles had reached crisis point.
"This is a serious development that could force many students,
instructors and employees to suffer losses," the union's chairman,
Katsuji Yamahara, said.
The British embassy in Tokyo has set up an advice page on its Web site.
It is putting British teachers in touch with a travel agency that has
agreed to provide cheap flights to the UK.
"We are doing everything we can in terms of consular support and advice
but the one thing we can't do is provide direct financial assistance,"
a spokesman told the Guardian. Nova president Nozomi Sahashi was fired at an emergency board meeting
on Thursday for his "opaque way of fundraising and negotiating with
potential business partners," the company said.
- I was in consideration to work for this company before I jumped the gun on EPIK...... Thank the Lord that I decided on coming to Korea on the EPIK program =P
|
