Gaba Corporation
Encyclopedia
is a chain of eikaiwa
(English conversation schools
) in Japan
. The company was founded in 1995 and is currently headquartered in Shibuya-ku in Tokyo
with learning studios in the Tokyo, Chiba
, Yokohama
, Nagoya, Osaka
, Kyoto
, and Kobe
areas. The current president and CEO is Kenji Kamiyama
, who will be replaced by Bruce Anderson
on December 5 2011.
The company provides language lessons on a "one-to-one"
(one student and one teacher) basis and using textbook lessons and online (computerized) instructor aids, language and vocabulary drills, and guided conversation topics. Gaba describes itself as a "man-to-man eikaiwa". In Japanese, "man-tsū-man" (マンツーマン), a katakana
phrase adapted from English, means "one-to-one", referring to the company's one student/one instructor lesson style.
, and named it after Gamma-Aminobutyric acid
, an amino acid
used by bodybuilders. Many other large Japanese English conversation schools
at the time also had four letter names, such as Nova, GEOS
, and Aeon
, and giving the school a four letter name would help it fit in. It seems likely the acronym was created second, and seems to originate from William Smith Clark, a nineteenth century American academic who taught at Sapporo Agricultural College, now Hokkaido University
. When leaving Japan, he said to his students "Boys, be ambitious!" This is now the motto of Hokkaido University.
In March 2004, Chutatsu Aono became the president and CEO.
In July 2004, Gaba was purchased by NIF Capital Management, a wholly owned subsidiary of NIF Ventures Co Ltd, in turn a subsidiary of Daiwa Securities. According to the Nikkei Shimbun, the prices was several billion yen.
It went public in December 2006, and had a valuation of 11.39 billion yen. The majority stockholder was Daiwa Securities, which owned 60.38% of Gaba's stock.
Due to declining business performance Gaba underwent a major transformation at the end of 2008 and the beginning of 2009. In October 2008, Kenji Kamiyama
joined the company as COO
and Senior Managing Executive Officer. In March 2009 he replaced Chutatsu Aono as President and CEO, and the position of COO was abolished. Kamiyama's focus was to reduce "wasteful expenditure" and to lead a rejuvenation of the profit and loss and balance sheets. During Aono's presidency Gaba expanded its number of Learning Studios, but also maintained its headquarters in the expensive GT Tower in Nakameguro, launched the ill-fated Global Stars initiative, and made decisions such as holding its company sports day in May 2007 at Tokyo Dome
.
In January 2011, Gaba reported having over 18,000 students in September 2010.
On August 5, 2011, it was announced that Nichii Gakkan
would purchase Gaba and make it a wholly owned subsidiary. This takeover was effective as of September 29, 2011.
Following Gaba's sale to Nichii Gakkan, effective December 5 2011 Kenji Kamiyama
will step down as President, Chief Executive Officer and Representative Director of Gaba, to be replaced by Bruce Anderson
.
had launched a take over bid
for Gaba paying 200,000 yen per share, the stock price rose to 199,000 on August 15, 2011. The tender offer opened August 8 and expired September 21. As of September 29, 2011 Nichii Gakkan owned 98.88% of Gaba's shares and Daiwa securities held no voting rights in Gaba.
On November 30th 2011, Gaba corporation's stock was removed from the Tokyo Stock Exchange and it became a wholly owned subsidiary of Nichii Gakkan.
purchased Gaba from Daiwa Securities and other shareholders. The acquisition price was 10,100,000,000 yen. The goodwill
was 8,000,000,000 and the amortization
period was 11 years, with the debt to be paid off at approximately 800,000,000 per year.
The finance for the deal was provided by loans from Tokyo-Mitsubishi UFJ bank
.
Gaba is to become a wholly owned subsidiary by a share exchange on December 5 2011.
Nichii Gakkan expected Gaba to begin contributing to business results from the second half of fiscal year 2012, with net sales of 4,300,000,000 and an operating income of 400,000,000.
. From November 16, 2009 the Support Centre moved to "Round Cross Moto-Yoyogi" building in Motoyoyogi in Shinjuku-ku, and on November 24 the "Quality Centre" did so too. After the closure of the Ikebukuro
Annex, Gaba's Japanese
classes, referred to as "Jaba", relocated there also. The Support Centre moved to the fourth floor, while the Quality Centre and Jaba classes moved to the eighth floor.
, Shibuya
, Jiyugaoka
and Yokohama
schools. A year later, in March 2001 it opened the Shinjuku East and Ginza
LSs. These were quickly followed in April 2001 with the Shinjuku West LS. In October 2001 the Kichijoji LS was opened, followed by the Ginza I-chome LS in November. In June 2002 the two Shinjuku LSs were merged.
The following year, 2003, saw a substantial increase in the number of Learning Studios. In January the Tameike-Sanno
and Shimbashi LSs were established. In February came Tokyo
LS, March saw the opening of Shimokitazawa
LS, and in April, Omotesando
Learning Studio opened. Next came Futako Tamagawa LS in May, and Seijo in June. In July, the Roppongi
Learning Studio opened, and in October the Akasaka Mitsuke
and Tamachi
Learning Studios opened.
The next year, 2004, saw a continued expansion. In January, Fujisawa
LS opened, in February, Aobadai
LS opened, in April, Sangenjaya
Learning Studio opened, and in May, the Meguro Learning Studio opened. In June, Shin-Yurigaoka
LS opened, and in October, Shinagawa LS opened.
Expansion continued in 2005, with Gaba opening its first Kansai
LS in Umeda
, Osaka. In February, the Chiba
LS opened, followed by the Shinsaibashi
and Sakae
LSs in April. In April, the Ikebukuro
LS relocated, as did the Yokohama
LS in December.
On July 13, 2005, Gaba opened up what the company called a 'next generation' learning studio designed specifically for women in Ginza
. The new location provided VIP "executive booths" that afforded complete privacy for the teacher and the student. English conversation schools often gear marketing campaigns towards women, often using strategies the focus on couplings between Japan and the other, represented and embodied by professional/romantic/sexual pairings between western instructors and female Japanese students. Gaba maintains its language center in Ginza, although it is no longer designated as female specific.
2006 saw Chayamachi LS open in April and the Omotesando
LS relocate in August. A new Shinjuku LS was opened in September, and in October Gaba opened another Kansai school, this time in Kobe
. The Roppongi LS closed in May 2006 due to "environmental reasons".
2007 saw LSs opened in Hachioji in March, Kita-Senju in April, the Futakotamagawa LS relocated in April, Ebisu
LS opened in August, and Kyoto
LS opened in November. The Hiroo
LS closed in October 2007, merging with the Ebisu LS.
In January 2008, the Shimbashi-Shiodome Learning Studio relocated, and in February, the Kawasaki
LS opened. In April, the Shibuya LS relocated, as did Kitasenju LS in June.
On 1 April 2009, the Otemachi
LS was opened, and on 1 October the Akabane
LS. The Nagoya LS closed in March 2009, and its operations were consolidated into the Sakae studio. Meguro Learning Studio was also relocated in April 2009. On October 31, the Ikebukuro annex closed.
Shinyurigaoka LS closed on 29 March 2010, it relocated to the new Machida LS, opened on 1 April 2010. Sangenjaya LS closed on May 31, 2010. The Tamachi LS was closed on September 30, 2010, and merged into the Shinagawa LS from October 1, 2010.
Gaba opened a new Nagoya LS on January 5, 2011.
On February 26, 2011, Shinsaibashi LS in Osaka relocated to the Namba district. Namba LS opened on March 1, 2011.
On May 1 2011 Gaba opened Kashiwa LS in Chiba.
The Jiugaoka LS relocated on October 1 2011.
The Ikebukuro LS will relocate from January 2012.
Kanto region:
The Akasaka-Tameike, Akabane, Ikebukuro, Ebisu, Otemachi, Omotesando, Kitasenju, Kichijoji, Ginza, Shinagawa, Shibuya, Shimokitazawa, Jiyugaoka, Shinjuku, Shinbashi-shiodome, Seijo, Tachikawa, Tokyo Hachioji, Futakotamagawa, Machida and Meguro LSs (Tokyo prefecture).
The Aobadai, Fujisawa, Kawasaki, and Yokohama LSs (Kanagawa prefecture).
Chiba and Kashiwa LSs (Chiba prefecture).
Omiya LS (Saitama prefecture).
Chubu region:
Nagoya and Sakae LSs (in Nagoya, Aichi prefecture).
Kansai region:
Kobe LS (Hyogo prefecture) and
Kyoto LS (Kyoto prefecture).
Namba, Chayamachi and Umeda LSs (all in Osaka prefecture).
, and Futako-Tamagawa.
and Sumitomo Mitsui Banking Corporation
.
Gaba also used a variety of non-Gaba textbooks for both daily conversation and business English lessons.
From April 2008, the Gaba level system, which had consisted of 13 levels, was simplified to a 10 level system, and new textbooks were introduced. In April 2008 the Snapshots New books began to be released. They were much less grammar-focused than the previous Snapshots books. Each level has twenty lessons, with the tenth and twentieth lessons being review lessons. The other eighteen lessons have five sections. First, a picture on the front page that instructors can ask the client to describe. Second, a dialogue section, then three practice sections where the target language for the lesson is tried out. Finally, there is an application section, essentially a roleplay.
From October 2008, the Business Advantage textbooks were rolled out. They have the same construction as Snapshots New. The only exception is that from level seven and up, the picture at the start of each lesson is replaced by a newspaper article that the client and instructor discuss at the beginning of the lesson.
The new curriculum of Snapshots New and Business Advantage have replaced the older Snapshots series, the latter which is no longer being sold. However, the Planet and Career Gaba texts are still being sold. All non-Gaba textbooks have been phased out.
In February 2011, Gaba introduced the new Travel series. There will be textbooks for level 1 to 4, replacing the Planet textbooks which were used before.
account, and allocates "lesson points" to the clients. Clients spend these lesson points, and as this occurs the funds are transferred from the escrow account to Gaba's regular accounts.
According to an interview with Reuters, Gaba students pay about 50,000 yen per month, higher than the 36,500 average allowance that company employees receive from their employers for such training.
Gaba clients can cancel their lessons until 6pm the previous day. If they cancel it after that the instructor is still paid for the lesson, however, Gaba reopens the lesson as an "R-slot" ("R" stands for "related activities), and it can be rebooked. If this occurs the instructor is only paid once; however, Gaba receives two lesson payments. However, if trial lessons ('FMs') cancel, Gaba does not receive any payment for R slots, but instructors are still paid. This is also true if lessons are moved to other instructors in the case of sickness. For example, if instructor A calls in sick, his/her lessons may be moved to instructor B. However, if the client chooses to cancel the lesson because he/she does not want to study with instructor B, then instructor B gets a paid R slot, but Gaba does not get paid for the slot. If students simply do not come for a lesson they book, it is referred to as a "no-show", and instructors are still paid.
If an R lesson does not rebook, instructors are expected to do one of a various number of "R" activities, such as sending postcards, updating lesson records, checking homework, and so on. After this, instructors are expected to sign the "R Activity Log", or RAL, as stated in article 6 of the Gaba contract for instructors. If they do not, Gaba will not pay them for the lesson slot. If a client books a lesson for the time of the R-slot without specifying which instructor they would like (known as a red lesson, for the color it appears on the schedule), then the booking system will automatically allocate it to the instructor with an R slot. This is regardless of whether there are any other instructors with open slots to be booked. As a consequence this policy means Gaba can keep its costs lower, but instructors lose lessons they would otherwise receive.
Gaba instructors can also receive bonuses for teaching a certain amount of lessons each month. There are three bonus levels: level A is for teaching 100-150 lessons per month, level B is for teaching 151-200 lessons per month, and level B is for teaching 201 or more lessons per month. Instructors may also receive bonuses for referring clients to Gaba. Instructors who conduct "First Meetings", lessons with prospective clients, can also receive a bonus if the client joins Gaba. When the bonus is paid depends on when the client joins, not when the FM was conducted. So, for example, if an FM is held late in the month but the client does not join until the following month, the bonus will be part of the paycheck for the following month. Also, instructors do not receive a bonus if the FM is done for a "Guaranteed" FM client. Guaranteed clients are generally supported by their company. FM instructors are also eligible for bonuses based on cash collection.
As Gaba instructors work under an entrusted contract, many benefits that are provided to salaried workers in Japan are not available to them. For example, they do not receive a travel allowance, sick leave, or holiday pay, and Gaba does not pay for part of their pension, health insurance, or unemployment insurance, as Japanese companies do for full-time workers. Gaba requires that any instructors who wish to be sponsored for a work visa by Gaba comply with Japanese law and be enrolled in National Health Insurance
which must be 100% paid for by the instructor. Furthermore, Gaba requires that these instructors have paid their taxes and not broken Japanese law during their stay in Japan.
While instructors may receive the monthly bonuses (generally not available to full-time employees) as described above, they do not receive the June and December bonuses that salaried employees at many Japanese companies are eligible for.
On the other hand, itaku status results in considerably lower taxation than salaried workers generally pay. Gaba pays a 5% consumption tax to its instructors, and a 10% withholding tax is taken from instructors' pay, so in the end, instructors see only 5% deducted from their paychecks. As they lack health and unemployment insurance and pensions, Gaba instructors pay no payroll taxes, which normally take a significant chunk out of Japanese salaried workers' paychecks. As a result, Gaba instructors see very little tax taken out of their monthly paychecks. Furthermore, despite the low amount of national income tax withheld from their pay, itaku status generally results in instructors getting a tax refund from the Japanese government when they file their taxes. They may also write off work-related expenses, especially travel expenses, that many salaried workers would not be able to claim. Nevertheless, they still have to pay city taxes.
As itaku workers, Gaba instructors must bill Gaba for services rendered every month. There is an online invoice that instructors must approve every month. The instructors electronically sign in by clicking a box and sending it to Gaba. They are also responsible for filing their own taxes, in contrast to salaried workers, whose taxes are filed by their companies.
The instructors in the Jaba program of Japanese lessons for instructors are employed under itaku contracts in the same way as the regular Gaba instructors, and are paid 1,500 yen per hour. They lack all the same benefits that regular Gaba instructors do, and they also lack any kind of belting system to raise their pay.
The higher belts were introduced in 2005, and since then the percentage of belted instructors has gradually increased. As of November 2011, 400 out of 968 Gaba instructors (41.32%) are being paid more than the 1,500 yen base rate for peak lessons. However, the rate of belting up slowed considerably following the restructuring in late 2008. In addition, the lesson evaluation average (LEA) required for some belts were raised in 2009, and the average for all belt were raised again in 2011. Gaba raised the minimum LEA requirement because the entire company saw a sharp rise in LEA from the time the original standards were implemented. In theory, the increased LEA requirements mean that it is harder to attain belts and easier to lose them. However, the minimum LEA requirements for various belting levels tend to be far lower than the average LEA of instructors in that belting level. For example, the average company LEA is about 4.65, but the current requirement for the D belts (the highest possible levels) are only slightly higher (4.7). The belts range from A to A2, B1, B2, C1, C2, D1, and D2.
The details are as follows:
Instructors are belted after undergoing certification and meeting certain requirements. The requirements to achieve and maintain belt levels are as follows:
(* The A2 Belt only came into existence in May 2010.)
Evaluations refer to evaluations done by students, which are done on a five-point scale, 5 being an exceptional lesson, and 1 being very unsatisfactory. This system requires that instructors are expected to get a large percentage of high evaluations in order to maintain their current belt level. This in turn encourages instructors to teach good lessons.
Negative evaluations refer to evaluations with a score of "1" or "2". The schedule refers to instructors' schedules, which must be submitted by the 10th of the previous month. Punctuality/Attendance issues are self-explanatory and peak-time lessons are explained above.
It is not currently possible to be belted-up to C1/C2 or D1/D2 as instructors at these levels currently exceed company-imposed limits (30 instructors for C1 and C2, and 15 instructors for D1 and D2.
There have been many cases where instructors have been "unbuckled", (issued with notices that Gaba may cut their pay if their performance does not improve) and then "debelted" (had their pay cut). Debelting became increasingly common from 2009 onwards.
This has been done on several different grounds. For example, instructors who have submitted their proposed schedule late, or received a lower client evaluation average than their belt level requires may be "belted down". As noted above, instructors are required to get a substantial percentage of "5" evaluations to avoid the threat of unbuckling. Getting too many "negative evaluations" (with a score of 1 or 2) can also resulting in debelting. "Attendance issues" primarily refer to incidents of lateness or failure to show for lessons, but can also refer to sick calls if they are seen as excessive or frivolous. Instructor support leaders are required to classify sick calls as "excused" or "unexcused" depending on the circumstances.
In order to be debelted, the instructor has to fail to meet the minimum requirements for their belting level for two consecutive contract periods. If Gaba determines than instructors have not improved their performance after the second contract period, then they will generally proceed to "debelt" the instructor. Every month, Gaba's Instructor Review Committee (IRC) meets to decide which instructors will be belted up or debelted. There is no way for instructors to appeal a decision or appear at an IRC meeting when their case is being considered. However, Instructor Support Leaders (essentially instructor managers working on the LS level) can and do appeal pending decisions to de-belt instructors.
Gaba plans to hold recruitment events in Australia in 2012.
became CEO, the number of instructors being belted has decreased and the number of instructors being debelted has increased. Nevertheless, the number of instructors being belted up per month has consistently been considerably higher than the number of instructors being debelted. The numbers below include belted instructors who have left Gaba in addition to instructors who have been debelted.
From July 1, 2010, all instructor support leaders and managers (who are on a fixed salary) are required to teach a number of regular Gaba lessons per month in an effort to save costs. The current range is between 25 and 50 depending on the size of the LS and workload of the individual instructor support leader; it was lowered slightly in October 2010. FMs (trial lessons) are considered as lessons taught, so if the instructor support leader teaches a number of FMs within a given month (a duty that existed before the new requirements), they may not actually teach many regular lessons. The number of lessons they teach are considered when their bonuses are calculated, but they are not paid for the lessons, so they are essentially doing them for free in addition to their regular work. This was done to save costs and to keep the instructor support leaders familiar with and proficient at teaching the Gaba curriculum. Concerns have been expressed that this practice may reduce the number of lessons available to itaku contract instructors. In order to minimize this issue, instructor support leaders are urged by Gaba management to open lessons only when no instructor is available to teach, whenever possible. However, for studios with many open spaces on the schedule, this may not be possible.
, and has members across different areas of Gaba.
Union representatives had many discussions with the company around 2007. In 2007, Gaba raised its base lesson rate pay from 1,400 yen per lesson to 1,500 yen per lesson for unbelted instructors, and also raised the lesson rates for belted instructors. In addition, contract lengths were increased from four to six months, but no other changes were forthcoming. The General Union has long claimed that these changes were due to union pressure, but Gaba has maintained that the changes were being discussed in 2006, before the union came to Gaba, and that the changes were not related to union pressure.
case through the Osaka Labor Commission claiming that Gaba had not negotiated in good faith, which they are required to do under article 7 of the Trade Union law
, and also to have instructors recognized as employees, not "entrusted independent" itaku (sub-contractors) which Gaba currently states they are.
The Osaka Labor Commission case ran from July 2008 to August 2009. A ruling was given on Christmas Eve 2009. It stated that Gaba had not committed an unfair labor practice
, because it had negotiated in good faith with the union. This was a victory for Gaba. However, the 35-page decision by the Labor Commission also included language that implied that Gaba's instructor contracting system had elements of labor and that Gaba instructors had the right to organize 'as employees'. This language was in turn interpreted by the General Union as a decision on the status of instructors, and through their web page declared that Gaba instructors are not itaku but employees under the trade union law. This did not immediately change the employment situation for Gaba instructors but the union said it would use this to win standard employment benefits (paid leave, unemployment insurance, health insurance, etc.) which Gaba does not currently give to instructors under their itaku contracts.
Despite winning the unfair labor practice
case, Gaba was dissatisfied with the wording of the original ruling, specifically the references to the instructor contracting having elements of labor under the trade union law, and appealed to have the wording of the ruling amended to the Central Labor Commission in Tokyo. Hearings were held from March to July 2010.
On October 28, 2010, after several times encouraging Gaba to reach some form of compromise with the union, the Central Labor Commission rejected the company's claim to have the language in the original ruling by the Osaka Labor Commission changed, stating that Gaba's claim had "no merit". The Central Labor Committee dismissed Gaba's claim because they didn't have enough information either way and they felt it should be decided by a lower court (the Osaka Labor Committee). Despite the inconclusive nature of this decision, it was again interpreted by the General Union as a ruling that Gaba instructors are employees under trade union law, and they again announced a victory on their web site. Gaba then sued the Central Labor Commission in Tokyo District Court
for rejecting their appeal, and the first hearing was held on January 19, 2011. As the Central Labor Commission is a government body under the umbrella of the Ministry of Health, Labour, and Welfare
, this meant that the company was suing a Japanese government agency. The court's decision was handed down on July 27, 2011, and Gaba's appeal was rejected. The company appealed this to the Tokyo High Court, and the first hearing took place on November 15 2011.
office to be enrolled in unemployment insurance. After Hello Work had taken no action for almost a year, in June 2011, the GU made a formal complaint, in response to which Hello Work apologized and said they would launch an investigation immediately.
, and the case was expected to last for some time. A ruling is expected at the end of November 2011.
, asking that the Osaka Labor Commission have Gaba cease interfering in union activities, withdraw their demand that the union remove the news article from their website, not intimidate the union and its members by litigation and other means, that then-majority stockholder Daiwa Securities negotiate with the union, and that Gaba pay the union 58,200,000 yen (the amount Gaba sued the union for) for interfering with union activities, and publicly apologize. The case was lodged on May 16, 2011, and was expected to last for some time.
, and in October the union demonstrated and leafleted Learning Studios in Osaka and Tokyo, and negotiated with Gaba and new owner Nichii Gakkan
in an effort to reverse the non-renewal.
Eikaiwa
or often shortened to , are English conversation schools, usually privately operated, in Japan. It is a combination of the word and.Although the Japanese public education system mandates that English be taught as part of the curriculum from fifth grade, the focus is generally on English grammar...
(English conversation schools
Language education
Language education is the teaching and learning of a foreign or second language. Language education is a branch of applied linguistics.- Need for language education :...
) in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. The company was founded in 1995 and is currently headquartered in Shibuya-ku in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
with learning studios in the Tokyo, Chiba
Chiba, Chiba
is the capital city of Chiba Prefecture, Japan. It is located approximately 40 km east of the center of Tokyo on Tokyo Bay. Chiba City became a government designated city in 1992. Its population as of 2008 is approximately 960,000....
, Yokohama
Yokohama
is the capital city of Kanagawa Prefecture and the second largest city in Japan by population after Tokyo and most populous municipality of Japan. It lies on Tokyo Bay, south of Tokyo, in the Kantō region of the main island of Honshu...
, Nagoya, Osaka
Osaka
is a city in the Kansai region of Japan's main island of Honshu, a designated city under the Local Autonomy Law, the capital city of Osaka Prefecture and also the biggest part of Keihanshin area, which is represented by three major cities of Japan, Kyoto, Osaka and Kobe...
, Kyoto
Kyoto
is a city in the central part of the island of Honshū, Japan. It has a population close to 1.5 million. Formerly the imperial capital of Japan, it is now the capital of Kyoto Prefecture, as well as a major part of the Osaka-Kobe-Kyoto metropolitan area.-History:...
, and Kobe
Kobe
, pronounced , is the fifth-largest city in Japan and is the capital city of Hyōgo Prefecture on the southern side of the main island of Honshū, approximately west of Osaka...
areas. The current president and CEO is Kenji Kamiyama
Kenji Kamiyama (businessman)
' is a Japanese businessman. He is currently CEO of Gaba Corporation. but will be stepping down on December 5 2011.-Education:Kamiyama received a bachelor's degree in economics from Tokyo University in March 1988...
, who will be replaced by Bruce Anderson
Bruce Anderson (businessman)
Bruce Anderson is a Canadian businessman and CEO of Gaba Corporation in Japan.-Education:Anderson graduated from McGill University with a Bachelor's Degree of Economics and Finance in June 1992. He subsequently obtained his Master's degree from the Australian National University in March...
on December 5 2011.
The company provides language lessons on a "one-to-one"
One-to-one (communication)
One-to-one in communication is the act of an individual communicating with another. In Internet terms, this can be done by e-mail but the most typical one-to-one communication in the Internet is instant messaging as it does not consider many-to-many communication such as a chat room as an...
(one student and one teacher) basis and using textbook lessons and online (computerized) instructor aids, language and vocabulary drills, and guided conversation topics. Gaba describes itself as a "man-to-man eikaiwa". In Japanese, "man-tsū-man" (マンツーマン), a katakana
Katakana
is a Japanese syllabary, one component of the Japanese writing system along with hiragana, kanji, and in some cases the Latin alphabet . The word katakana means "fragmentary kana", as the katakana scripts are derived from components of more complex kanji. Each kana represents one mora...
phrase adapted from English, means "one-to-one", referring to the company's one student/one instructor lesson style.
Meaning of the company name
The company name "GABA" is an acronym for "girls, be ambitious; boys, be audacious!". According to a speech given by co-founder Hideki Yoshino, he chose this name because he had a keen interest in physical fitnessPhysical fitness
Physical fitness comprises two related concepts: general fitness , and specific fitness...
, and named it after Gamma-Aminobutyric acid
Gamma-aminobutyric acid
γ-Aminobutyric acid is the chief inhibitory neurotransmitter in the mammalian central nervous system. It plays a role in regulating neuronal excitability throughout the nervous system...
, an amino acid
Amino acid
Amino acids are molecules containing an amine group, a carboxylic acid group and a side-chain that varies between different amino acids. The key elements of an amino acid are carbon, hydrogen, oxygen, and nitrogen...
used by bodybuilders. Many other large Japanese English conversation schools
Eikaiwa
or often shortened to , are English conversation schools, usually privately operated, in Japan. It is a combination of the word and.Although the Japanese public education system mandates that English be taught as part of the curriculum from fifth grade, the focus is generally on English grammar...
at the time also had four letter names, such as Nova, GEOS
GEOS (eikaiwa)
was one of the Big Four private eikaiwa, or English conversation teaching companies, in Japan. Its extensive network of overseas schools made it the world's largest language school chain. The firm went into bankruptcy in Japan on 20 April 2010...
, and Aeon
AEON (eikaiwa)
is a chain of English conversation teaching companies in Japan. It is considered one of the historical "Big Four" eikaiwa schools. Although it shares a nearly identical name in English, Aeon is not affiliated with the Aeon Group, a major Japanese retail and financial services corporation.The...
, and giving the school a four letter name would help it fit in. It seems likely the acronym was created second, and seems to originate from William Smith Clark, a nineteenth century American academic who taught at Sapporo Agricultural College, now Hokkaido University
Hokkaido University
Hokkaido University is one of the most prestigious universities in Japan. It can be seen in the several rankings such as shown below.-General Rankings:...
. When leaving Japan, he said to his students "Boys, be ambitious!" This is now the motto of Hokkaido University.
Founding and history
Gaba was founded in 1995 by Karen and Hideki Yoshino. It was originally a matching service for students and teachers, and lessons were conducted in various locations, such as coffee shops or at teachers' homes. From 2000, the company established schools, referred to as "Learning Studios" where students, referred to as clients, and teachers, referred to as instructors, met, and lessons were conducted.In March 2004, Chutatsu Aono became the president and CEO.
In July 2004, Gaba was purchased by NIF Capital Management, a wholly owned subsidiary of NIF Ventures Co Ltd, in turn a subsidiary of Daiwa Securities. According to the Nikkei Shimbun, the prices was several billion yen.
It went public in December 2006, and had a valuation of 11.39 billion yen. The majority stockholder was Daiwa Securities, which owned 60.38% of Gaba's stock.
Due to declining business performance Gaba underwent a major transformation at the end of 2008 and the beginning of 2009. In October 2008, Kenji Kamiyama
Kenji Kamiyama (businessman)
' is a Japanese businessman. He is currently CEO of Gaba Corporation. but will be stepping down on December 5 2011.-Education:Kamiyama received a bachelor's degree in economics from Tokyo University in March 1988...
joined the company as COO
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
and Senior Managing Executive Officer. In March 2009 he replaced Chutatsu Aono as President and CEO, and the position of COO was abolished. Kamiyama's focus was to reduce "wasteful expenditure" and to lead a rejuvenation of the profit and loss and balance sheets. During Aono's presidency Gaba expanded its number of Learning Studios, but also maintained its headquarters in the expensive GT Tower in Nakameguro, launched the ill-fated Global Stars initiative, and made decisions such as holding its company sports day in May 2007 at Tokyo Dome
Tokyo Dome
Tokyo Dome is a 55,000-seat baseball stadium located in Bunkyo Ward of Tokyo, Japan.The stadium opened for business on March 17, 1988. It was built on the site of the Velodrome which was next door to the site of the predecessor ballpark, Kōrakuen Stadium...
.
In January 2011, Gaba reported having over 18,000 students in September 2010.
On August 5, 2011, it was announced that Nichii Gakkan
Nichii Gakkan
is a medical services company in Japan. The company was founded in August 1973 by Akihiro Terada. and is currently headquartered in Chiyoda-ku in Tokyo...
would purchase Gaba and make it a wholly owned subsidiary. This takeover was effective as of September 29, 2011.
Following Gaba's sale to Nichii Gakkan, effective December 5 2011 Kenji Kamiyama
Kenji Kamiyama (businessman)
' is a Japanese businessman. He is currently CEO of Gaba Corporation. but will be stepping down on December 5 2011.-Education:Kamiyama received a bachelor's degree in economics from Tokyo University in March 1988...
will step down as President, Chief Executive Officer and Representative Director of Gaba, to be replaced by Bruce Anderson
Bruce Anderson (businessman)
Bruce Anderson is a Canadian businessman and CEO of Gaba Corporation in Japan.-Education:Anderson graduated from McGill University with a Bachelor's Degree of Economics and Finance in June 1992. He subsequently obtained his Master's degree from the Australian National University in March...
.
Stock Price as a publicly listed company
Gaba went public on December 5, 2006, and was listed as on the Tokyo Stock Exchange. Its initial stock price opened at 255,000 yen per share, but the prices gradually fell from this level to the point where on March 4, 2009, the stock price was closing at 13,900 yen. After that the stock price gradually rose, reaching 162,700 on March 7, 2011. After the Tohoku earthquake it fell, at its lowest point closing at 82,100 on March 15. Subsequently it rebounded, and after the August 5, 2011 announcement that Nichii GakkanNichii Gakkan
is a medical services company in Japan. The company was founded in August 1973 by Akihiro Terada. and is currently headquartered in Chiyoda-ku in Tokyo...
had launched a take over bid
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
for Gaba paying 200,000 yen per share, the stock price rose to 199,000 on August 15, 2011. The tender offer opened August 8 and expired September 21. As of September 29, 2011 Nichii Gakkan owned 98.88% of Gaba's shares and Daiwa securities held no voting rights in Gaba.
On November 30th 2011, Gaba corporation's stock was removed from the Tokyo Stock Exchange and it became a wholly owned subsidiary of Nichii Gakkan.
Nichii Gakkan Purchase of Gaba
In 2011 Nichii GakkanNichii Gakkan
is a medical services company in Japan. The company was founded in August 1973 by Akihiro Terada. and is currently headquartered in Chiyoda-ku in Tokyo...
purchased Gaba from Daiwa Securities and other shareholders. The acquisition price was 10,100,000,000 yen. The goodwill
Goodwill (accounting)
Goodwill is an accounting concept meaning the value of an entity over and above the value of its assets. The term was originally used in accounting to express the intangible but quantifiable "prudent value" of an ongoing business beyond its assets, resulting perhaps because the reputation the firm...
was 8,000,000,000 and the amortization
Amortization
Amortization is the process of decreasing, or accounting for, an amount over a period. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin admortire to kill, from Latin ad- + mort-, mors death.When used...
period was 11 years, with the debt to be paid off at approximately 800,000,000 per year.
The finance for the deal was provided by loans from Tokyo-Mitsubishi UFJ bank
The Bank of Tokyo-Mitsubishi UFJ
is the largest bank in Japan, which was established on January 1, 2006, with the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd. The bank serves as the core retail and commercial banking arm of the Mitsubishi UFJ Financial Group....
.
Gaba is to become a wholly owned subsidiary by a share exchange on December 5 2011.
Nichii Gakkan expected Gaba to begin contributing to business results from the second half of fiscal year 2012, with net sales of 4,300,000,000 and an operating income of 400,000,000.
Headquarters
Until November 2009, Gaba had two separate buildings, the "Support Centre" in the GT Tower in Nakameguro, effectively the headquarters of the company. It also had a "Quality Centre", where training was conducted, located in EbisuEbisu, Tokyo
is a neighborhood in Shibuya, Tokyo, Japan. Conveniently near Roppongi and central Shibuya, Ebisu is easily accessed by the JR Yamanote and Hibiya lines via Ebisu Station...
. From November 16, 2009 the Support Centre moved to "Round Cross Moto-Yoyogi" building in Motoyoyogi in Shinjuku-ku, and on November 24 the "Quality Centre" did so too. After the closure of the Ikebukuro
Ikebukuro
is a commercial and entertainment district in Toshima, Tokyo, Japan. Toshima ward offices, Ikebukuro station, and several shops, restaurants, and enormous department stores are located within city limits....
Annex, Gaba's Japanese
Japanese language
is a language spoken by over 130 million people in Japan and in Japanese emigrant communities. It is a member of the Japonic language family, which has a number of proposed relationships with other languages, none of which has gained wide acceptance among historical linguists .Japanese is an...
classes, referred to as "Jaba", relocated there also. The Support Centre moved to the fourth floor, while the Quality Centre and Jaba classes moved to the eighth floor.
Internal Structure
Gaba has a number of different departments responsible for dealing with instructors:- Instructor Support - the Instructor Support Leaders (ISLs) and Instructor Support Managers (ISMs) are former instructors who work in the Learning Studios dealing with instructor scheduling, lesson quality, sales, and other issues relating to instructors.
- Instructor Recruiting - the department responsible for recruiting new instructors, conducting interviews, etc._
- Instructor Certification - the certification department, responsible for certifying new instructors (initial certification) and other follow-up certification in the Gaba teaching methodology.
- Instructor Administration - the department that deals with contract renewals, belting, instructor payment, tax issues, etc.
- Academic Development - the department that creates Gaba's learning materials.
Learning Studio history
After being founded in Tokyo in 1995, Gaba has consistently expanded, opening at least one Learning Studio every year since 2000. Generally the Learning Studios are named after the area they are located in, although some are named after the station they are closest to (if this differs from the area name). The first Learning Studios were opened in March 2000 with the IkebukuroIkebukuro
is a commercial and entertainment district in Toshima, Tokyo, Japan. Toshima ward offices, Ikebukuro station, and several shops, restaurants, and enormous department stores are located within city limits....
, Shibuya
Shibuya, Tokyo
is one of the 23 special wards of Tokyo, Japan. As of 2008, it has an estimated population of 208,371 and a population density of 13,540 persons per km². The total area is 15.11 km²....
, Jiyugaoka
Jiyūgaoka
is a commercial and residential neighborhood in Meguro and Setagaya, located in Tokyo.- Neighbourhood :Jiyūgaoka consists of the area surrounding Jiyūgaoka Station, where the Tōyoko Line and Ōimachi Line intersect...
and Yokohama
Yokohama
is the capital city of Kanagawa Prefecture and the second largest city in Japan by population after Tokyo and most populous municipality of Japan. It lies on Tokyo Bay, south of Tokyo, in the Kantō region of the main island of Honshu...
schools. A year later, in March 2001 it opened the Shinjuku East and Ginza
Ginza
is a district of Chūō, Tokyo, located south of Yaesu and Kyōbashi, west of Tsukiji, east of Yūrakuchō and Uchisaiwaichō, and north of Shinbashi.It is known as an upscale area of Tokyo with numerous department stores, boutiques, restaurants and coffeehouses. Ginza is recognized as one of the most...
LSs. These were quickly followed in April 2001 with the Shinjuku West LS. In October 2001 the Kichijoji LS was opened, followed by the Ginza I-chome LS in November. In June 2002 the two Shinjuku LSs were merged.
The following year, 2003, saw a substantial increase in the number of Learning Studios. In January the Tameike-Sanno
Tameike-Sanno Station
is a subway station in the Tokyo Metro network. It is located in the wards of Chiyoda and Minato .-History:The station opened on September 30, 1997 as the southern terminus of the Namboku Line...
and Shimbashi LSs were established. In February came Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
LS, March saw the opening of Shimokitazawa
Shimokitazawa
is a neighborhood in Setagaya, Tokyo. It consists of the neighborhood immediately surrounding Shimo-Kitazawa Station, where the Odakyū and Keiō Inokashira Lines intersect. Also known as "Shimokita", the district is a center for stage theater and live music venues. It is home to the historic Honda...
LS, and in April, Omotesando
Omotesando
' is an avenue, subway station and neighborhood in the Minato and Shibuya wards in Tokyo stretching from Harajuku station, the foot of the famous Takeshita Street, to Aoyama-dori where Omotesandō station can be found. Zelkova trees line both sides of the avenue. Around 100,000 cars drive down the...
Learning Studio opened. Next came Futako Tamagawa LS in May, and Seijo in June. In July, the Roppongi
Roppongi
is a district of Minato, Tokyo, Japan, famous as home to the rich Roppongi Hills area and an active night club scene. Many foreign embassies are located in Roppongi, and the night life is popular with locals and foreigners alike...
Learning Studio opened, and in October the Akasaka Mitsuke
Akasaka-mitsuke Station
is a Tokyo Metro station located in Minato, Tokyo, Japan.-Lines:The station is also connected by underground passageways to , which is served by the Tokyo Metro Yurakucho Line, Tokyo Metro Hanzomon Line and Tokyo Metro Namboku Line, and it is possible to transfer between the two stations without...
and Tamachi
Tamachi
Tamachi is the informal name for the area surrounding Tamachi Station in Minato, Tokyo, generally referring to the districts of Shiba, Shibaura and Mita. The name, meaning literally "field town", probably derives from the earlier presence of rice paddies.-History:During the Edo period Tamachi was...
Learning Studios opened.
The next year, 2004, saw a continued expansion. In January, Fujisawa
Fujisawa, Kanagawa
is a city located in Kanagawa, Japan. As of 2010, the city had an estimated population of 407,731 and a population density of 5,870 people per km². The total area is 69.51 km²-Geography:...
LS opened, in February, Aobadai
Aobadai, Meguro, Tokyo
is a district located in the northern portion of Meguro, Tokyo, Japan, which consists of 1 to 4-chōme. As of January 1, 2008, it has a total population of 7,265.-Geography:...
LS opened, in April, Sangenjaya
Sangen-Jaya Station
is a train station in Setagaya, Tokyo, Japan. It is located at the merging of two highways, Route 246 and Setagaya-dori, just outside the central area of Shibuya. Historically, people coming into Tokyo from the countryside would stop in Sangenjaya for a rest before entering the heart of the city...
Learning Studio opened, and in May, the Meguro Learning Studio opened. In June, Shin-Yurigaoka
Shin-Yurigaoka Station
is a junction railway station operated by the Odakyu Electric Railway, located in Asao-ku, Kawasaki, Kanagawa Prefecture, Japan. Served by the Odawara Line and the Tama Line, it is 21.5 kilometers from the terminus of the Odawara Line at Shinjuku Station and is a terminus for the Tama Line...
LS opened, and in October, Shinagawa LS opened.
Expansion continued in 2005, with Gaba opening its first Kansai
Kansai
The or the lies in the southern-central region of Japan's main island Honshū. The region includes the prefectures of Mie, Nara, Wakayama, Kyoto, Osaka, Hyōgo, and Shiga. Depending on who makes the distinction, Fukui, Tokushima and even Tottori Prefecture are also included...
LS in Umeda
Umeda
Umeda is the main commercial and central business district in Kita-ku, Osaka, Japan, best known as the city's main northern railway terminus .Umeda is a large traffic hub, as well as the principal office and hotel district...
, Osaka. In February, the Chiba
Chiba, Chiba
is the capital city of Chiba Prefecture, Japan. It is located approximately 40 km east of the center of Tokyo on Tokyo Bay. Chiba City became a government designated city in 1992. Its population as of 2008 is approximately 960,000....
LS opened, followed by the Shinsaibashi
Shinsaibashi
Shinsaibashi is a district in the Chūō-ku ward of Osaka, Japan and the city's main shopping area. It centers around Shinsaibashi-suji, a covered shopping street, that is north of Dōtonbori and parallel and east of Mido-suji street. Associated with Shinsaibashi, and west of Mido-suji street, is...
and Sakae
Sakae
Sakae may refer to several places in Japan:* Sakae, Chiba , a town in Chiba Prefecture* Sakae, Niigata , a town in Niigata Prefecture...
LSs in April. In April, the Ikebukuro
Ikebukuro
is a commercial and entertainment district in Toshima, Tokyo, Japan. Toshima ward offices, Ikebukuro station, and several shops, restaurants, and enormous department stores are located within city limits....
LS relocated, as did the Yokohama
Yokohama
is the capital city of Kanagawa Prefecture and the second largest city in Japan by population after Tokyo and most populous municipality of Japan. It lies on Tokyo Bay, south of Tokyo, in the Kantō region of the main island of Honshu...
LS in December.
On July 13, 2005, Gaba opened up what the company called a 'next generation' learning studio designed specifically for women in Ginza
Ginza
is a district of Chūō, Tokyo, located south of Yaesu and Kyōbashi, west of Tsukiji, east of Yūrakuchō and Uchisaiwaichō, and north of Shinbashi.It is known as an upscale area of Tokyo with numerous department stores, boutiques, restaurants and coffeehouses. Ginza is recognized as one of the most...
. The new location provided VIP "executive booths" that afforded complete privacy for the teacher and the student. English conversation schools often gear marketing campaigns towards women, often using strategies the focus on couplings between Japan and the other, represented and embodied by professional/romantic/sexual pairings between western instructors and female Japanese students. Gaba maintains its language center in Ginza, although it is no longer designated as female specific.
2006 saw Chayamachi LS open in April and the Omotesando
Omotesando
' is an avenue, subway station and neighborhood in the Minato and Shibuya wards in Tokyo stretching from Harajuku station, the foot of the famous Takeshita Street, to Aoyama-dori where Omotesandō station can be found. Zelkova trees line both sides of the avenue. Around 100,000 cars drive down the...
LS relocate in August. A new Shinjuku LS was opened in September, and in October Gaba opened another Kansai school, this time in Kobe
Kobe
, pronounced , is the fifth-largest city in Japan and is the capital city of Hyōgo Prefecture on the southern side of the main island of Honshū, approximately west of Osaka...
. The Roppongi LS closed in May 2006 due to "environmental reasons".
2007 saw LSs opened in Hachioji in March, Kita-Senju in April, the Futakotamagawa LS relocated in April, Ebisu
Ebisu, Tokyo
is a neighborhood in Shibuya, Tokyo, Japan. Conveniently near Roppongi and central Shibuya, Ebisu is easily accessed by the JR Yamanote and Hibiya lines via Ebisu Station...
LS opened in August, and Kyoto
Kyoto
is a city in the central part of the island of Honshū, Japan. It has a population close to 1.5 million. Formerly the imperial capital of Japan, it is now the capital of Kyoto Prefecture, as well as a major part of the Osaka-Kobe-Kyoto metropolitan area.-History:...
LS opened in November. The Hiroo
Hiroo
Hiroo may refer to:* Hiroo, Shibuya, Tokyo, a neighborhood in the Shibuya district of Tokyo* Hiroo Station, a subway station in Tokyo.* Hiroo, Hokkaidō, a town in the Tokachi subprefecture of Hokkaidō...
LS closed in October 2007, merging with the Ebisu LS.
In January 2008, the Shimbashi-Shiodome Learning Studio relocated, and in February, the Kawasaki
Kawasaki, Kanagawa
is a city located in Kanagawa Prefecture, Japan, between Tokyo and Yokohama. It is the 9th most populated city in Japan and one of the main cities forming the Greater Tokyo Area and Keihin Industrial Area....
LS opened. In April, the Shibuya LS relocated, as did Kitasenju LS in June.
On 1 April 2009, the Otemachi
Otemachi
is a district of Chiyoda, Tokyo, Japan. It is located north of Tokyo Station and Marunouchi, east of the Imperial Palace, west of Nihonbashi and south of Kanda. It is the location of the former site of the village of Shibazaki, the most ancient part of Tokyo....
LS was opened, and on 1 October the Akabane
Akabane Station
is a JR East railway station located in Kita, Tokyo, Japan.-Lines:* Tōhoku Main Line* Takasaki Line* Keihin-Tōhoku Line* Shōnan-Shinjuku Line* Saikyō Line-Adjacent stations:-External links:*...
LS. The Nagoya LS closed in March 2009, and its operations were consolidated into the Sakae studio. Meguro Learning Studio was also relocated in April 2009. On October 31, the Ikebukuro annex closed.
Shinyurigaoka LS closed on 29 March 2010, it relocated to the new Machida LS, opened on 1 April 2010. Sangenjaya LS closed on May 31, 2010. The Tamachi LS was closed on September 30, 2010, and merged into the Shinagawa LS from October 1, 2010.
Gaba opened a new Nagoya LS on January 5, 2011.
On February 26, 2011, Shinsaibashi LS in Osaka relocated to the Namba district. Namba LS opened on March 1, 2011.
On May 1 2011 Gaba opened Kashiwa LS in Chiba.
The Jiugaoka LS relocated on October 1 2011.
The Ikebukuro LS will relocate from January 2012.
Current Learning Studios
As of December 2011 Gaba has thirty-six Learning Studios across Japan. The vast majority of them (twenty-nine) are located in the Kanto region, with the remaining LSs being in Chubu (two LSs) and Kansai (five LSs).Kanto region:
The Akasaka-Tameike, Akabane, Ikebukuro, Ebisu, Otemachi, Omotesando, Kitasenju, Kichijoji, Ginza, Shinagawa, Shibuya, Shimokitazawa, Jiyugaoka, Shinjuku, Shinbashi-shiodome, Seijo, Tachikawa, Tokyo Hachioji, Futakotamagawa, Machida and Meguro LSs (Tokyo prefecture).
The Aobadai, Fujisawa, Kawasaki, and Yokohama LSs (Kanagawa prefecture).
Chiba and Kashiwa LSs (Chiba prefecture).
Omiya LS (Saitama prefecture).
Chubu region:
Nagoya and Sakae LSs (in Nagoya, Aichi prefecture).
Kansai region:
Kobe LS (Hyogo prefecture) and
Kyoto LS (Kyoto prefecture).
Namba, Chayamachi and Umeda LSs (all in Osaka prefecture).
Global Stars & Gaba Kids
In early 2008 Global Stars, a section of the business built around teaching one-on-one lessons to children was launched. There were designated "Learning Fields" established in Hiroo and Seijo, as well as "Learning Field-enabled Learning Studios" in Ebisu and Tachikawa. There was not enough demand for Global Stars, and the Learning Fields in Hiroo and Seijo were closed in March 2009. Gaba Global Stars was merged into a number of regular leaning studios. From 1 September 2009, Gaba Global Stars was officially re-branded Gaba Kids. Gaba Kids is offered in a number of Learning Studios in the Kanto area - including Aobadai, Hachioji, ChibaChiba, Chiba
is the capital city of Chiba Prefecture, Japan. It is located approximately 40 km east of the center of Tokyo on Tokyo Bay. Chiba City became a government designated city in 1992. Its population as of 2008 is approximately 960,000....
, and Futako-Tamagawa.
Offsite lessons
While the vast majority of Gaba's lessons are conducted in its Learning Studios, it also teaches offsite lessons to various corporate clients, including RakutenRakuten
operates and manages business to consumer electronic commerce site, Rakuten Ichiba, and consumer to consumer auction site, Rakuten Freemarket. Its business is centered in Japan, although it has began international expansion through acquisitions. The chief executive officer is Hiroshi Mikitani...
and Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...
.
Textbooks
In February 2002, Gaba launched the Snapshots series of textbooks. The seven Snapshots textbooks were designed to teach grammar points by combining a story about a mixed group of young Japanese and English-speaking characters interacting all over the world. Gaba later created online drills for instructors to use with the textbooks. In June 2003, a second line of textbooks, Planet, was created. The Planet textbooks were designed to teach travel English, with more focus on situations than specific grammar. In July 2004, the Career textbooks were launched. As with the Planet books, the three Career books were focused more on situations, in this case business situations, than specific grammar.Gaba also used a variety of non-Gaba textbooks for both daily conversation and business English lessons.
From April 2008, the Gaba level system, which had consisted of 13 levels, was simplified to a 10 level system, and new textbooks were introduced. In April 2008 the Snapshots New books began to be released. They were much less grammar-focused than the previous Snapshots books. Each level has twenty lessons, with the tenth and twentieth lessons being review lessons. The other eighteen lessons have five sections. First, a picture on the front page that instructors can ask the client to describe. Second, a dialogue section, then three practice sections where the target language for the lesson is tried out. Finally, there is an application section, essentially a roleplay.
From October 2008, the Business Advantage textbooks were rolled out. They have the same construction as Snapshots New. The only exception is that from level seven and up, the picture at the start of each lesson is replaced by a newspaper article that the client and instructor discuss at the beginning of the lesson.
The new curriculum of Snapshots New and Business Advantage have replaced the older Snapshots series, the latter which is no longer being sold. However, the Planet and Career Gaba texts are still being sold. All non-Gaba textbooks have been phased out.
In February 2011, Gaba introduced the new Travel series. There will be textbooks for level 1 to 4, replacing the Planet textbooks which were used before.
Jaba
In 2008, Gaba started the Jaba program, teaching Japanese lessons to instructors. At first they were held in the Tokyo LS, then in the Ikebukuro Annex, and from November 2009, they relocated to the new headquarters in Moto-Yoyogi. Jaba offers both private and group lessons for students of a variety of levels.Lesson purchase system
Gaba clients purchase blocks of lessons when they join the company and when they renew their contract. The company then places these funds into an escrowEscrow
An escrow is:* an arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money and/or documents for the transacting parties, with the timing of such disbursement by the third party dependent on the fulfillment of...
account, and allocates "lesson points" to the clients. Clients spend these lesson points, and as this occurs the funds are transferred from the escrow account to Gaba's regular accounts.
Lesson cost
The cost to students for Gaba lessons is between 5000-7000 yen per lesson, depending on the course they purchase.According to an interview with Reuters, Gaba students pay about 50,000 yen per month, higher than the 36,500 average allowance that company employees receive from their employers for such training.
Instructor employment system
Gaba instructors are not currently employees, but rather are 'itaku', effectively independent contractors. Instructors have flexibility in choosing their schedule, although in practice the morning, evening, and weekend lessons are the ones which tend to book, as working Japanese people are more likely to be able to take lessons during those times. As a result, many instructors tend to focus their schedules on those times. Instructors submit the lessons they are available for via Gaba's intranet. Gaba only pays instructors for lessons that are booked and not canceled.Gaba clients can cancel their lessons until 6pm the previous day. If they cancel it after that the instructor is still paid for the lesson, however, Gaba reopens the lesson as an "R-slot" ("R" stands for "related activities), and it can be rebooked. If this occurs the instructor is only paid once; however, Gaba receives two lesson payments. However, if trial lessons ('FMs') cancel, Gaba does not receive any payment for R slots, but instructors are still paid. This is also true if lessons are moved to other instructors in the case of sickness. For example, if instructor A calls in sick, his/her lessons may be moved to instructor B. However, if the client chooses to cancel the lesson because he/she does not want to study with instructor B, then instructor B gets a paid R slot, but Gaba does not get paid for the slot. If students simply do not come for a lesson they book, it is referred to as a "no-show", and instructors are still paid.
If an R lesson does not rebook, instructors are expected to do one of a various number of "R" activities, such as sending postcards, updating lesson records, checking homework, and so on. After this, instructors are expected to sign the "R Activity Log", or RAL, as stated in article 6 of the Gaba contract for instructors. If they do not, Gaba will not pay them for the lesson slot. If a client books a lesson for the time of the R-slot without specifying which instructor they would like (known as a red lesson, for the color it appears on the schedule), then the booking system will automatically allocate it to the instructor with an R slot. This is regardless of whether there are any other instructors with open slots to be booked. As a consequence this policy means Gaba can keep its costs lower, but instructors lose lessons they would otherwise receive.
Gaba instructors can also receive bonuses for teaching a certain amount of lessons each month. There are three bonus levels: level A is for teaching 100-150 lessons per month, level B is for teaching 151-200 lessons per month, and level B is for teaching 201 or more lessons per month. Instructors may also receive bonuses for referring clients to Gaba. Instructors who conduct "First Meetings", lessons with prospective clients, can also receive a bonus if the client joins Gaba. When the bonus is paid depends on when the client joins, not when the FM was conducted. So, for example, if an FM is held late in the month but the client does not join until the following month, the bonus will be part of the paycheck for the following month. Also, instructors do not receive a bonus if the FM is done for a "Guaranteed" FM client. Guaranteed clients are generally supported by their company. FM instructors are also eligible for bonuses based on cash collection.
As Gaba instructors work under an entrusted contract, many benefits that are provided to salaried workers in Japan are not available to them. For example, they do not receive a travel allowance, sick leave, or holiday pay, and Gaba does not pay for part of their pension, health insurance, or unemployment insurance, as Japanese companies do for full-time workers. Gaba requires that any instructors who wish to be sponsored for a work visa by Gaba comply with Japanese law and be enrolled in National Health Insurance
National Health Insurance (Japan)
is one of the two major types of insurance programs available in Japan. The other is. National Health insurance is designed for people who are not eligible to be members of any employment-based health insurance program...
which must be 100% paid for by the instructor. Furthermore, Gaba requires that these instructors have paid their taxes and not broken Japanese law during their stay in Japan.
While instructors may receive the monthly bonuses (generally not available to full-time employees) as described above, they do not receive the June and December bonuses that salaried employees at many Japanese companies are eligible for.
On the other hand, itaku status results in considerably lower taxation than salaried workers generally pay. Gaba pays a 5% consumption tax to its instructors, and a 10% withholding tax is taken from instructors' pay, so in the end, instructors see only 5% deducted from their paychecks. As they lack health and unemployment insurance and pensions, Gaba instructors pay no payroll taxes, which normally take a significant chunk out of Japanese salaried workers' paychecks. As a result, Gaba instructors see very little tax taken out of their monthly paychecks. Furthermore, despite the low amount of national income tax withheld from their pay, itaku status generally results in instructors getting a tax refund from the Japanese government when they file their taxes. They may also write off work-related expenses, especially travel expenses, that many salaried workers would not be able to claim. Nevertheless, they still have to pay city taxes.
As itaku workers, Gaba instructors must bill Gaba for services rendered every month. There is an online invoice that instructors must approve every month. The instructors electronically sign in by clicking a box and sending it to Gaba. They are also responsible for filing their own taxes, in contrast to salaried workers, whose taxes are filed by their companies.
The instructors in the Jaba program of Japanese lessons for instructors are employed under itaku contracts in the same way as the regular Gaba instructors, and are paid 1,500 yen per hour. They lack all the same benefits that regular Gaba instructors do, and they also lack any kind of belting system to raise their pay.
Belting system
Instructors are given what Gaba refers to as a "belt", which determines their per lesson pay rate. The base belt is A, which pays 1,500 yen per lesson. Instructors wishing to earn more than the base rate can earn that rate by meeting a set of optional requirements and performing well enough within their Learning Studio to earn a recommendation. Instructors ranked above A are paid a higher rate for 'peak-time lessons'. Peak lessons are morning and evening lessons during the week, and any time during weekends or public holidays. The payment for non peak-time lessons does not increase until the D belts.The higher belts were introduced in 2005, and since then the percentage of belted instructors has gradually increased. As of November 2011, 400 out of 968 Gaba instructors (41.32%) are being paid more than the 1,500 yen base rate for peak lessons. However, the rate of belting up slowed considerably following the restructuring in late 2008. In addition, the lesson evaluation average (LEA) required for some belts were raised in 2009, and the average for all belt were raised again in 2011. Gaba raised the minimum LEA requirement because the entire company saw a sharp rise in LEA from the time the original standards were implemented. In theory, the increased LEA requirements mean that it is harder to attain belts and easier to lose them. However, the minimum LEA requirements for various belting levels tend to be far lower than the average LEA of instructors in that belting level. For example, the average company LEA is about 4.65, but the current requirement for the D belts (the highest possible levels) are only slightly higher (4.7). The belts range from A to A2, B1, B2, C1, C2, D1, and D2.
The details are as follows:
| Peak lessons | Non-peak lessons | |
|---|---|---|
| D2 | 2200 | 1600 |
| D1 | 2100 | 1600 |
| C2 | 2000 | 1500 |
| C1 | 1900 | 1500 |
| B2 | 1800 | 1500 |
| B1 | 1700 | 1500 |
| A2 | 1600 | 1500 |
| A | 1500 | 1500 |
Instructors are belted after undergoing certification and meeting certain requirements. The requirements to achieve and maintain belt levels are as follows:
| Evaluation average (From February 2011) | Evaluation average (From April 2009) | Evaluation average (Before April 2009) | % of negative evaluations | Submitting schedule on time | Punctuality/Attendance issues | Peak lessons taught | |
|---|---|---|---|---|---|---|---|
| D2 | 4.7 | 4.6 | 4.6 | 0.3% | Always | None | 80 |
| D1 | 4.7 | 4.6 | 4.5 | 0.3% | Always | None | 80 |
| C2 | 4.5 | 4.4 | 4.4 | 0.4% | Always | None | 60 |
| C1 | 4.5 | 4.4 | 4.3 | 0.4% | Always | None | 60 |
| B2 | 4.3 | 4.2 | 4.2 | 0.8% | Always | None | 40 |
| B1 | 4.3 | 4.2 | 4.0 | 0.8% | Always | None | 40 |
| A2 | 4.3 | 4.2(*) | N/A | 0.8% | Always | None | 40 |
| A | 4.1 | 4.0 | N/A | 1.0% | Always | None | 0 |
(* The A2 Belt only came into existence in May 2010.)
Evaluations refer to evaluations done by students, which are done on a five-point scale, 5 being an exceptional lesson, and 1 being very unsatisfactory. This system requires that instructors are expected to get a large percentage of high evaluations in order to maintain their current belt level. This in turn encourages instructors to teach good lessons.
Negative evaluations refer to evaluations with a score of "1" or "2". The schedule refers to instructors' schedules, which must be submitted by the 10th of the previous month. Punctuality/Attendance issues are self-explanatory and peak-time lessons are explained above.
It is not currently possible to be belted-up to C1/C2 or D1/D2 as instructors at these levels currently exceed company-imposed limits (30 instructors for C1 and C2, and 15 instructors for D1 and D2.
There have been many cases where instructors have been "unbuckled", (issued with notices that Gaba may cut their pay if their performance does not improve) and then "debelted" (had their pay cut). Debelting became increasingly common from 2009 onwards.
This has been done on several different grounds. For example, instructors who have submitted their proposed schedule late, or received a lower client evaluation average than their belt level requires may be "belted down". As noted above, instructors are required to get a substantial percentage of "5" evaluations to avoid the threat of unbuckling. Getting too many "negative evaluations" (with a score of 1 or 2) can also resulting in debelting. "Attendance issues" primarily refer to incidents of lateness or failure to show for lessons, but can also refer to sick calls if they are seen as excessive or frivolous. Instructor support leaders are required to classify sick calls as "excused" or "unexcused" depending on the circumstances.
In order to be debelted, the instructor has to fail to meet the minimum requirements for their belting level for two consecutive contract periods. If Gaba determines than instructors have not improved their performance after the second contract period, then they will generally proceed to "debelt" the instructor. Every month, Gaba's Instructor Review Committee (IRC) meets to decide which instructors will be belted up or debelted. There is no way for instructors to appeal a decision or appear at an IRC meeting when their case is being considered. However, Instructor Support Leaders (essentially instructor managers working on the LS level) can and do appeal pending decisions to de-belt instructors.
Overseas recruiting
Following the lead of many other English conversation schools in Japan, Gaba recruits extensively outside of Japan. In March 2008, it conducted a recruitment event in Vancouver, Canada. In February 2010 it also conducted a recruitment event in Melbourne, Australia. In October 2010, it held another recruitment event in Vancouver. Another Australian recruiting event was held in March 2011, and another in London, England in June 2011. Gaba held recruitment events in the Seattle in the US and Victoria and Vancouver in Canada in September 2011, and in Taiwan in October 2011. In November 2011, Gaba held recruitment events in San Jose and San Francisco, California.Gaba plans to hold recruitment events in Australia in 2012.
2008-2011 Cost-cutting impact on instructors
As explained above, Gaba Instructors can do some training sessions and pass a test to be eligible to be “belted" and receive a higher per-lesson pay rate. However, from late 2008, after Kenji KamiyamaKenji Kamiyama (businessman)
' is a Japanese businessman. He is currently CEO of Gaba Corporation. but will be stepping down on December 5 2011.-Education:Kamiyama received a bachelor's degree in economics from Tokyo University in March 1988...
became CEO, the number of instructors being belted has decreased and the number of instructors being debelted has increased. Nevertheless, the number of instructors being belted up per month has consistently been considerably higher than the number of instructors being debelted. The numbers below include belted instructors who have left Gaba in addition to instructors who have been debelted.
| February 2010 | March 2010 | May 2010 | June 2010 | July 2010 | August 2010 | September 2010 | October 2010 | November 2010 | December 2010 | January 2011 | February 2011 | March 2011 | April 2011 | May 2011 | June 2011 | July 2011 | August 2011 | September 2011 | October 2011 | November 2011 | Change | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| D2 | 19 | 19 | 18 | 17 | 16 | 16 | 16 | 16 | 15 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 14 | 13 | 12 | 12 | 13 | -6 |
| D1 | 20 | 18 | 16 | 17 | 16 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 14 | 14 | 14 | 13 | 13 | 12 | 13 | 12 | -8 |
| C2 | 37 | 38 | 37 | 34 | 34 | 32 | 34 | 34 | 34 | 32 | 31 | 31 | 31 | 31 | 30 | 30 | 31 | 31 | 30 | 27 | 26 | -11 |
| C1 | 36 | 36 | 36 | 34 | 34 | 32 | 30 | 30 | 30 | 30 | 31 | 31 | 30 | 29 | 28 | 27 | 25 | 27 | 29 | 30 | 31 | -5 |
| B2 | 93 | 96 | 94 | 94 | 93 | 93 | 93 | 94 | 99 | 99 | 99 | 99 | 97 | 95 | 95 | 95 | 92 | 94 | 94 | 94 | 94 | +1 |
| B1 | 139 | 133 | 127 | 117 | 115 | 110 | 107 | 102 | 96 | 92 | 87 | 88 | 89 | 95 | 95 | 98 | 96 | 91 | 84 | 80 | 81 | -58 |
| A2 | N/A | N/A | 15 | 31 | 39 | 50 | 57 | 64 | 69 | 79 | 89 | 91 | 96 | 95 | 96 | 92 | 114 | 117 | 131 | 142 | 143 | +143 |
| A | 505 | 500 | 512 | 510 | 510 | 494 | 502 | 504 | 510 | 498 | 491 | 514 | 529 | 507 | 512 | 512 | 520 | 549 | 546 | 542 | 568 | +63 |
From July 1, 2010, all instructor support leaders and managers (who are on a fixed salary) are required to teach a number of regular Gaba lessons per month in an effort to save costs. The current range is between 25 and 50 depending on the size of the LS and workload of the individual instructor support leader; it was lowered slightly in October 2010. FMs (trial lessons) are considered as lessons taught, so if the instructor support leader teaches a number of FMs within a given month (a duty that existed before the new requirements), they may not actually teach many regular lessons. The number of lessons they teach are considered when their bonuses are calculated, but they are not paid for the lessons, so they are essentially doing them for free in addition to their regular work. This was done to save costs and to keep the instructor support leaders familiar with and proficient at teaching the Gaba curriculum. Concerns have been expressed that this practice may reduce the number of lessons available to itaku contract instructors. In order to minimize this issue, instructor support leaders are urged by Gaba management to open lessons only when no instructor is available to teach, whenever possible. However, for studios with many open spaces on the schedule, this may not be possible.
Gaba union establishment and early discussions
On 6 September 2007, a union of Gaba's instructors was formed. The Gaba union was formed as part of the Osaka-based General UnionGeneral Union
Founded in 1991, the ' is a labor union headquartered in Osaka, Japan. It mainly represents teachers and staff who are employed in language education at private conversation schools, high schools and universities in the Kansai and Chubu regions of Japan. Recently the union has started major...
, and has members across different areas of Gaba.
Union representatives had many discussions with the company around 2007. In 2007, Gaba raised its base lesson rate pay from 1,400 yen per lesson to 1,500 yen per lesson for unbelted instructors, and also raised the lesson rates for belted instructors. In addition, contract lengths were increased from four to six months, but no other changes were forthcoming. The General Union has long claimed that these changes were due to union pressure, but Gaba has maintained that the changes were being discussed in 2006, before the union came to Gaba, and that the changes were not related to union pressure.
First Labor Commission case
The union then took an unfair labor practiceUnfair Labor Practice (Japan)
An is when an employer in Japan discriminates against a worker who is associated with a union, or when an employer refuses to negotiate with a trade union or interferes in the activities of a union...
case through the Osaka Labor Commission claiming that Gaba had not negotiated in good faith, which they are required to do under article 7 of the Trade Union law
Trade Union Act of 1949
The is a Japanese law. It was enacted on 1 June, 1949 to provide the right for workers to organize in Japan. It has been translated as the "Trade Union Law" and "Labor Union Law".- Pre-war Trade Union bills:...
, and also to have instructors recognized as employees, not "entrusted independent" itaku (sub-contractors) which Gaba currently states they are.
The Osaka Labor Commission case ran from July 2008 to August 2009. A ruling was given on Christmas Eve 2009. It stated that Gaba had not committed an unfair labor practice
Unfair Labor Practice (Japan)
An is when an employer in Japan discriminates against a worker who is associated with a union, or when an employer refuses to negotiate with a trade union or interferes in the activities of a union...
, because it had negotiated in good faith with the union. This was a victory for Gaba. However, the 35-page decision by the Labor Commission also included language that implied that Gaba's instructor contracting system had elements of labor and that Gaba instructors had the right to organize 'as employees'. This language was in turn interpreted by the General Union as a decision on the status of instructors, and through their web page declared that Gaba instructors are not itaku but employees under the trade union law. This did not immediately change the employment situation for Gaba instructors but the union said it would use this to win standard employment benefits (paid leave, unemployment insurance, health insurance, etc.) which Gaba does not currently give to instructors under their itaku contracts.
Despite winning the unfair labor practice
Unfair Labor Practice (Japan)
An is when an employer in Japan discriminates against a worker who is associated with a union, or when an employer refuses to negotiate with a trade union or interferes in the activities of a union...
case, Gaba was dissatisfied with the wording of the original ruling, specifically the references to the instructor contracting having elements of labor under the trade union law, and appealed to have the wording of the ruling amended to the Central Labor Commission in Tokyo. Hearings were held from March to July 2010.
On October 28, 2010, after several times encouraging Gaba to reach some form of compromise with the union, the Central Labor Commission rejected the company's claim to have the language in the original ruling by the Osaka Labor Commission changed, stating that Gaba's claim had "no merit". The Central Labor Committee dismissed Gaba's claim because they didn't have enough information either way and they felt it should be decided by a lower court (the Osaka Labor Committee). Despite the inconclusive nature of this decision, it was again interpreted by the General Union as a ruling that Gaba instructors are employees under trade union law, and they again announced a victory on their web site. Gaba then sued the Central Labor Commission in Tokyo District Court
Tokyo District Court
is a district court located at 1-1-4 Kasumigaseki, Chiyoda, Tokyo, Japan. -References:...
for rejecting their appeal, and the first hearing was held on January 19, 2011. As the Central Labor Commission is a government body under the umbrella of the Ministry of Health, Labour, and Welfare
Ministry of Health, Labour and Welfare (Japan)
The ' is a cabinet level ministry of the Japanese government. It is commonly known as Kōrō-shō in Japan. This ministry provides regulations on maximum residue limits for agricultural chemicals in foods, basic food and drug regulations, standards for foods, food additives, etc.It was formed with...
, this meant that the company was suing a Japanese government agency. The court's decision was handed down on July 27, 2011, and Gaba's appeal was rejected. The company appealed this to the Tokyo High Court, and the first hearing took place on November 15 2011.
Hello Work
In August 2010, union members lodged applications with the Shibuya Hello WorkHello Work
Hello Work is the English name for the Japanese government's Employment Service Center, which manages unemployment insurance benefits for both foreign and Japanese unemployed workers, and which also provides job-matching programs to the unemployed....
office to be enrolled in unemployment insurance. After Hello Work had taken no action for almost a year, in June 2011, the GU made a formal complaint, in response to which Hello Work apologized and said they would launch an investigation immediately.
SESC complaint
On October 4, 2010, the General Union made an official complaint to the Securities and Exchange Surveillance Commission, part of the Financial Services Agency, over compliance issues based on Gaba stating in its report for the 2009 financial year that there was no union at the company, and that labor relations were "smooth and harmonious", and also for failing to mention the Osaka Labor Commission case and Gaba's subsequent appeal to the Central Labor Commission in Tokyo.Libel lawsuit
In addition to suing the government, Gaba decided to sue the General Union for libel, over an article on the union webpage dealing with Gaba's compliance. The company sued the union for 58 million yen in damages and legal costs. The first hearing was held on January 28, 2011, at the Tokyo District CourtTokyo District Court
is a district court located at 1-1-4 Kasumigaseki, Chiyoda, Tokyo, Japan. -References:...
, and the case was expected to last for some time. A ruling is expected at the end of November 2011.
Further Labor Commission case
After Gaba sued the General Union for libel, the union lodged another unfair labor practiceUnfair labor practice
In United States labor law, the term unfair labor practice refers to certain actions taken by employers or unions that violate the National Labor Relations Act and other legislation...
, asking that the Osaka Labor Commission have Gaba cease interfering in union activities, withdraw their demand that the union remove the news article from their website, not intimidate the union and its members by litigation and other means, that then-majority stockholder Daiwa Securities negotiate with the union, and that Gaba pay the union 58,200,000 yen (the amount Gaba sued the union for) for interfering with union activities, and publicly apologize. The case was lodged on May 16, 2011, and was expected to last for some time.
Non-renewal of union branch chair
After over 8 years as a Gaba instructor, Gaba non-renewed the contract of Francis Strange, the chair of the Gaba branch of the General Union, effective November 1 2011. The union viewed this as union bustingUnion busting
Union busting is a wide range of activities undertaken by employers, their proxies, and governments, which attempt to prevent the formation or expansion of trade unions...
, and in October the union demonstrated and leafleted Learning Studios in Osaka and Tokyo, and negotiated with Gaba and new owner Nichii Gakkan
Nichii Gakkan
is a medical services company in Japan. The company was founded in August 1973 by Akihiro Terada. and is currently headquartered in Chiyoda-ku in Tokyo...
in an effort to reverse the non-renewal.