Berlitz strike grows despite naysayers

September 30, 2008
Historic six-month action is starting to reap dividends

Despite scabs, naysayers and second-guessing pundits in the English-language media, Berlitz teachers are making history. With more than 100 teachers striking at dozens of schools around the Kanto region for over six months, the industrial action at Berlitz is now the largest sustained strike in Japan’s language school history.

Begunto demands a 4.6 percent base pay hike and a one-off bonus of one month’s salary. Berlitz Japan has not raised teachers’ base pay for 16 years. Three years ago, the language school lowered starting pay by over 10 percent per lesson, a cut only partially mitigated by a performance-based raise this year.

These demands are carried over from last year and are the two key demands of Begunto’s 2008 “shunto.”

Shunto is the traditional labor offensive that unions around the country wage each spring. It literally means “spring battle.” In Japan, even labor disputes invoke seasonal change.

Although management’s two proposals have thus far fallen short of Begunto’s demands, members are showing extraordinary energy and commitment to building momentum in the strike until the demands are met. Two language centers that have had particularly effective walkouts are the powerful Akasaka and Ikebukuro “shops.” More than half of all Berlitz schools in Kanto have participated in the strike.

In order to realize the strike demands, the union has organized and coordinated sophisticated surgical strikes, including bait-and-switch and strike feints. This keeps bosses on their toes.

Due to logistic issues, Begunto often can give written notice to the company only several minutes before the start of a particular strike. So management has had to scramble to cover lessons. They sometimes send and pay replacement teachers to cover lessons that end up not being struck, so nonstrikes can be as costly to the company as strikes. On other occasions, management sets up a team of replacement teachers at a nearby cafe, ready to rush over at a moment’s notice in case a strike occurs. The union calls these scabs-in-waiting “caffeine cowboys.” The company also assigns teachers to special “scab-watch” periods, meaning they get paid to wait in case a strike might happen.

Berlitz apparently prefers to spend a great deal of money and energy breaking the strike rather than resolving it by meeting the union’s reasonable demands. Their reasonableness becomes evident in light of Japan’s rising consumer price index (up 2.1 percent year-on-year in August), the slashing of starting pay in 2005 and the 16-year pay hike drought.

In addition to striking nearly every day, Begunto has held demonstrations at various schools around the Kanto Plain nearly every week and has toured Tokyo several times in a sound truck, announcing over a loud speaker, to make sure that the public knows why Berlitz teachers are fighting.

Begunto recently posted on the bulletin board of many Berlitz schools a document entitled “Definition of a Scab,” which caused some controversy. The definition actually belongs to author Jack London and includes such colorful hyperbole as:

“After God had finished the rattlesnake, the toad, the vampire, He had some awful substance left with which He made a scab.

“A scab is a two-legged animal with a cork-screw soul, a water-logged brain, a combination backbone of jelly and glue. Where others have hearts, he carries a tumor of rotten principles.

“When a scab comes down the street, men turn their backs and angels weep in heaven, and the Devil shuts the gates of Hell to keep him out.”

That neither London nor Begunto meant the above definition in a literal way hardly needs mention. That union members are frustrated every time a fellow teacher chooses to help break the strike is why the document went up.

Union members never insist that every single Berlitz employee strike alongside his or her coworkers. They have only asked that teachers refrain from covering struck lessons when it is optional, as it often is. Scabs undermine the hard work, sacrifice and dedication of striking teachers and prolong resolution of the dispute.

One thing I learned from this strike is that there is no way to stay out of it. Each employee is forced by the circumstances of the strike to make a personal decision, which is either: 1) to join the strike; 2) to stay on the sidelines but refuse to cover lessons when it is optional; 3) to help break the strike by choosing to cover struck lessons.

Demonstrating its moderation in comparison with many labor unions, Begunto members have decided to consider only members of the third group as full-fledged “scabs.” In my opinion, it is a difference between courage and cowardice, principle versus pusillanimity.

It is easy to criticize the strike or the union, especially from the sidelines. What is hard is to get up and do something, to make a difference, fight for justice, take action right at the front lines. Begunto members do more than talk — they act. The small number of teachers and staff who oppose the strike and/or the union will themselves benefit when the union wins higher pay for all.

In fact, thanks to the solidarity, dedication and hard work of union members — and a strike entails quite a bit of hard work — management has already made two pay hike offers, the latest on Sept. 26. At the time of writing, the union was widely expected to reject the second offer as far short of demands. Yet even this offer would never have happened without the efforts of the Begunto strikers.

Most surprisingly, the strike has been very successful as a union-building tool, drawing in many new members impressed that the union is taking positive action.

The right to strike is guaranteed by the Japanese Constitution, the Trade Union Law and international law. An individual has precious little negotiation strength vis-a-vis a big company (or even a small one). A union acting out of solidarity multiplies the negotiating position of its members exponentially. It also turns the workplace from an effective dictatorship into something approaching a democracy.

Teachers at Simul International — like Berlitz Japan a subsidiary of Benesse Corp. — are also striking, “simultaneously,” as it were. In their case, they are fighting for enrollment in Japan’s “shakai hoken” pension and health scheme. The union argues that Simul management is violating both the Health Insurance Law and Pension Insurance Law by failing to enroll its full-time employees.

So Benesse Group has its hands full with big strikes at two of its member companies at the same time.

It’s ironic that some employees, such as the teacher in the recent article in Tokyo’s Metropolis magazine (”Banding Together”), complain that the strike has not yet led to total victory when they themselves are part of the problem. I would say to them that we have not won yet because you have not joined the strike. Strength in numbers — again it hardly needs mentioning.

When more teachers join the strike rather than grumble that it “hasn’t worked yet,” the union will win.

Louis Carlet is Berlitz General Union’s Tokyo Representative, National Union of General Workers Tokyo Nambu.

http://search.japantimes.co.jp/cgi-bin/fl20080930zg.html

Nova head avoids fresh indictment

July 30, 2008

The Osaka District Public Prosecutor’s Office announced Tuesday it will not indict the former president of Nova Corp. for failing to pay the salaries of non-Japanese teachers and Japanese personnel.

Nozomu Sahashi, 56, is already under indictment for embezzling ¥320 million from reserve funds for corporate workers at the failed foreign-language school chain.

http://search.japantimes.co.jp/cgi-bin/nn20080730b1.html

Nova chief indicted for embezzling firm’s funds

July 16, 2008

Nozomu Sahashi, former president of the bankrupt Nova Corp. language-school chain, was indicted Tuesday for embezzling corporate funds, prosecutors said.

Sahashi, 56, allegedly diverted around ¥320 million from an employment benefit fund last July 20 to reimburse tuition fees for people who canceled their contracts for language courses.

Sahashi has admitted to the allegations, changing his previous stance that he had believed that part of the funds could be used for the company’s operations, according to investigative sources.

http://search.japantimes.co.jp/cgi-bin/nn20080716a8.html

Nova’s Sahashi indicted over fund

Nozomu Sahashi, former president of failed language school chain Nova Corp., was indicted Tuesday by the Osaka District Public Prosecutors Office, on charges of misusing 320 million yen from an employees’ mutual aid group fund to refund student fees.

The prosecutors decided to stop pursuing attempts to indict Toshihiko Murata, who was the president of Nova affiliate Nova Kikaku at the time of the alleged offense, after concluding his involvement was purely on a subordinate level.

According to sources close to the investigation, Sahashi was the chairman of Shayukai, a mutual aid group of Nova employees that deducted money from members’ salaries to create an employee welfare fund.

http://www.yomiuri.co.jp/dy/national/20080716TDY02307.htm

Papers sent on Nova, ex-president over wages

July 1, 2008

The Osaka Labor Bureau sent papers to prosecutors Monday on failed English language school operator Nova Corp. and its former president, Nozomu Sahashi, on suspicion of violating the Labor Standards Law for failing to pay wages to Nova workers.

According to the bureau, Sahashi, 56, is suspected of failing to pay 105 million yen in wages to 400 Nova workers.

Among the 400, 134 were Japanese staffers who did not receive salaries for September, totaling 33 million yen, and 266 were foreign instructors who received no wages for October, totaling 72 million yen.

Sahashi has claimed his failing to pay wages is not a violation of the law. He was quoted by labor officials as saying, “I feel responsible as the [former] president of the company, but I did what I could do, like putting my own money into the business.”

http://www.yomiuri.co.jp/dy/national/20080701TDY02310.htm

Osaka Labor Bureau reports Nova Corp., ex-President Sahashi to prosecutors

Labor authorities have reported former Nova Corp. President Nozomu Sahashi and the English language school chain to public prosecutors for failing to pay their employees.

The Osaka Labor Bureau sent documents to the Osaka District Public Prosecutors Office on Monday accusing Sahashi, 56, and Nova Corp. of breaking Labor Standards Law.

According to the labor bureau, Nova Corp. failed to pay about 105 million yen in wages to 400 foreign instructors and Japanese employees at the school.

The amount and the number of victims are a record high for a case of unpaid regular wages, excluding overtime-work wages and severance payment.

Sahashi has admitted to not having paid the wages, but denies that he did it deliberately.

“I was busy raising money using my personal funds,” he told police.

According to police, in 2007 Sahashi failed to pay about 33 million yen in wages to 134 Japanese employees on Sept. 27, and around 72 million yen to 266 foreign instructors on Oct. 15.

Sahashi has already been arrested for embezzlement in the conduct of business for allegedly misappropriating a massive sum from the employees’ welfare fund.

http://mdn.mainichi.jp/national/news/20080701p2a00m0na019000c.html

Nova ex-president Sahashi says he was solely responsible for embezzlement

June 27, 2008

Disgraced former Nova Corp. President Nozomu Sahashi has admitted that he was solely responsible for misappropriating money from the coffers of an employees’ welfare fund, police sources said.

Sahashi, 56, who was arrested for embezzlement in the conduct of business after he was found to have misappropriated about 320 million yen pooled in a Nova employees’ mutual aid fund, had initially denied part of the allegations. However, he later told police, “I instructed everything,” admitting to the charges.

Osaka Prefectural Police also found that Sahashi was keeping track once a month of the remaining amount of money in the account of Shayukai — the mutual aid society of Nova employees — by having the amount reported to him. Police will further question Sahashi over the case, suspecting that he misused the money pooled in the Nova employees’ welfare fund for his own use.

In July last year, Sahashi allegedly transferred about 320 million yen from the Shayukai account into an account of Nova Kikaku, an affiliate of Nova. The money was later transferred to a Nova account. Investigators suspect that Sahashi attempted to launder money by transferring the funds.

In a related development, investigators suspect that Sahashi had also previously misappropriated money from the employees’ fund. In around 2005, he used about 10 million yen from the fund for the medical treatment of a Nova board member who was hospitalized at the time, as well as a total of several millions of yen for a year-end party and other expenses, police said.

http://mdn.mainichi.jp/national/news/20080627p2a00m0na009000c.html

NOVA funds recorded as loan to president

June 26, 2008

Reserve funds for employees of failed language school chain Nova Corp. that had been transferred into an account for refunding student fees were recorded as a loan to its former president, Nozomu Sahashi, who is under arrest for misappropriating the funds, police said Wednesday.

The Osaka prefectural police believe Sahashi instructed a Nova accountant to falsify the purpose of the transfer as being “to cover refunds for students who cancelled their enrollment before finishing all programs” so he would not be blamed for the misuse of the funds.

The accountant recorded in a ledger for the reserve funds that the money was loaned to Sahashi from the mutual aid association.

However, there was no document to certify that the money was loaned by contract to Sahashi by the association.

At that time, Sahashi had personal assets, including bank accounts and property, worth several hundred millions of yen. The police believe he had no intention of repaying the money to the association.

[Nozomu] Sahashi and [Toshihiko] Murata [former deputy manager of Nova’s accounting department who was also arrested on a similar charge] were sent to the prosecutors office on Wednesday afternoon. The police will continue searching locations related to the suspects.

http://www.yomiuri.co.jp/dy/national/20080626TDY02305.htm

1 billion yen unaccounted for at Nova

About 1 billion yen is accounted for at Nova Corp., the failed operator of a large foreign language school chain, sources close to the firm said.

Osaka Prefectural Police are investigating how the money has been used.

Nova’s records show that approximately 700 million yen was withdrawn from one of the company’s accounts in early August last year, according to the sources. The document does not specify how the money was spent.

Roughly 1.4 billion yen was placed into the same account in September last year. However, some 1.7 billion yen was later withdrawn in the same month under the pretext of “Sahashi, temporary payment,” an apparent reference to payment made by then Nova President Nozomu Sahashi, say the sources.

The source of the 1.4 billion yen, or how the 1.7 billion yen was used, remains unknown.

http://mdn.mainichi.jp/national/news/20080626p2a00m0na017000c.html

Police say ex-Nova boss hoarded riches on brink of bust

June 25, 2008

Disgraced former Nova Corp. President Nozomu Sahashi was in possession of a large amount of personal assets when the English conversation school was on the brink of collapse, police said.

Sahashi, 56, from Osaka, was arrested on Tuesday on charges of embezzlement in the conduct of business after he was found to have used about 320 million yen that had been pooled in Nova employees’ mutual aid society. Sahashi has reportedly denied part of the allegations.

Investigators found on Tuesday that Sahashi had had hundreds of millions of yen worth of personal assets in the forms of cash and real estate when he allegedly misappropriated the massive sum from the employees’ welfare fund by transferring the money into a Nova account in July last year.

In a related development, police also arrested Toshihiko Murata, 49, former president of a Nova affiliate called Nova Kikaku, on charges of embezzlement in the conduct of business.

Murata, who was reputed to be Sahashi’s right-hand man, has reportedly admitted to the allegations. He had assisted Sahashi mainly in accounting since around 1990.

Investigators have also raided a building in Osaka’s Chuo-ku, where Nova Kikaku’s headquarters was based.

http://mdn.mainichi.jp/national/news/20080625p2a00m0na006000c.html

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