May 23rd, 2009 fmorgan
As we are approaching seven years of doing business in Costa Rica, with five years living here full time, it strikes us how it seems like only yesterday and yet a lifetime ago that we started growing trees.
When we think about how much has happened in the last seven years, it feels like there is enough to fill a lifetime. Because of that, we keep saying, “Was that only a year ago?!”
Yet we are so busy here, time goes by in a flash. OK, maybe that’s just because we’re middle-aged, but time does seem to creep when you’re bored.
And we are anything but bored! They say you learn something new every day, well, when you have a business in a culture new to you this is quite literally true.
Here’s just one example of what we’re talking about. As we continue to grow the plantation and wood processing business in Costa Rica, one area of constant learning is the labor law. The up-to-date books on it are available at many bookstores, both the full version and an abbreviated version. The law tends not to cover all the specifics; for that, we consult with lawyers to see how the courts have ruled in cases similar to the situation we are dealing with at the moment. For instance, we had to lay off someone for lack of work in his area. While he was still working for us, during his period of advance notice, we came up with other work that he could do and told him he was not being laid off after all. He had found another job and still wanted to leave. We didn’t think we had to pay the full separation as though we had laid him off, since he was now leaving by his own choice. One of our staff raised a question about it, so we checked with a lawyer. There had just been a ruling by the labor court in favor of the worker in a case exactly like it. Our former employee wasn’t even aware of our mistake, but we went back and paid him the difference. When you think about it, the idea of losing that separation money could keep someone from accepting a job while they have the chance.
The ministry of labor (MTSS) inspected us recently, along with all the farmers and businesses in our area. It was a lawyer who works for the MTSS who came with two assistants. She was friendly, but had the overall demeanor of a schoolmarm bringing her charges back in line. That was with us, who only had to appoint a labor relations committee and add a few lines to our salary receipts that we give our employees. We can only wonder what her demeanor is with companies and farms that she finds not in compliance with the labor laws.
We noticed that one of the assistants always stays in the car, whether because he is just their driver or because he is watching for illegal laborers fleeing the workplace, we don’t know. It’s so interesting to try to understand what’s really going on under the surface here. It’s no wonder we keep feeling like we’re going in and out of some weird time warp.
And in business as in life, “learning is not compulsory…neither is survival” (W. Edwards Deming).
-
Posted in business in Costa Rica, cultural adaptation, labor law | No Comments »
May 16th, 2009 fmorgan
You mean I gotta take another bath!?
__________________________________________________________________________________
When I lived in the USA, I was always conscious of what month it was because each month in the northeast is for me strongly associated with a certain weather pattern.
In Costa Rica, although I am rarely sure what month it is, I do know which season it is. It’s so obvious. Costa Rica only has two seasons: mud and dust.
The mud season. For eight months of the year, I walk out the door and put on my rubber boots (after shaking them in case something crawled in there during the night). Unlike when we lived in the USA, I don’t check outside to see how many layers to wear. Temperature really doesn’t change that much year round, so what you wear is pretty much the same everyday, except for what you put on your feet.
When the rainy season starts, we generally have two weeks of sogginess. There is daily rain, sometimes very heavy and at times with lightening. We get the same thing when the rainy season ends. During the rest of the seven months, at the Monte Cristo plantation where we live, generally there is a big rain twice a day, at about 4:00 in the morning and again in the afternoon. Inside the La Garita plantation, the rain comes every other day. This would seem to make for better living conditions at La Garita, but it really doesn’t, because the sunny day heats the soil, and the previous day’s rain creates a sauna. For living, I prefer a daily rain, but the trees don’t care.
The dust season. Activities change drastically during the dry season. We have more visitors and it is easier to do changes to infrastructure, like road and bridge building, etc. Construction is much, much easier when you aren’t ankle deep, or more, in mud. You can nearly double your time in construction if you do it during the wet season compared to the dry.
One very nice thing about the dry season is it coincides with the coolest time of the year. So the increased sun is offset by the cool winds that come from the North.
When the temperature may vary no more than 10 degrees Farenheit for the entire year, even a change of 5 degrees seems like a lot. So we all act like we’re freezing any time we have to put on socks.
The dry season is great for swimming in our river, as the water is low and crystal clear. Not so good for fishing though. A rain makes the water a little more murky and so helps hide me from the fish. Most of the Ticos go fishing during the dry season because there are places that are accessible no other time of the year except by horse.
We do the heavy pruning of the trees in the dry season. Mainly because bark is slippery and when we are pruning large trees, it is important that nothing is moving around. We can prune for form all year round.
This is good because the grass isn’t growing as much, so workers who would have been working at keeping the grass cleared around the trees can switch to pruning.
For tree owners, the best time to visit is during the dry season, which is also peak tourist time. This is because getting into the plantations is much easier. During the dry season, we can almost drive up to the individual trees. Otherwise, it can require quite a walk to get to the trees.
For riding a mountain bike, I prefer the rainy season, but after things have dried just a little. Just enough to keep the dust down, but not so much that all the rock is loose. One really nice thing about the dry season is you can ride on the pure dirt roads, which are nearly impassible even with a bike for much of the year. They come through with a grader and clean them up during the beginning of the dry season, giving a great opportunity to ride on hard-packed dry clay.
The truth is, I like both seasons. And the end of each, I am eager for the next. When the dust is everywhere, a nice rain is very welcome, and when you can’t seem to find a dry place anywhere, three months of no rain cures that feeling very well indeed.
Posted in clothes, cycling, finca, forestry, mud, nursery, roads, tree owners, trees | No Comments »
May 8th, 2009 fmorgan
One of the things I learned along the way is the difference between an asset and a liability: Assets make money, liabilities eat money. My family used to tease me that even my hobbies were profitable (or at least broke even). If I went fishing, you could pretty much count on me bringing home a nice mess of perch or panfish for eating.
Recently I was asked if I was interested in selling our old ATV. It was being used almost every day, but it got me thinking, “Why do I have this since I have other modes of transportation?” Back when we bought it used, it was important for hauling seedlings into the farms, but since then we have grown to the point of using a tractor so we can haul up to three thousand seedlings at a time. I was using the ATV to get back and forth between the office and the farms, but I also have a motorcycle that is better and cheaper for that purpose.
So I bargained to swap the ATV for five milk cows with their calves. Our caretaker wants to milk the cows and can cut the grass for them inside our farm with a scythe. I get the manure for the nursery and our garden, and he pays off the cows with his income from making the milk into cheese.
So, the ATV has gone from being a liability that needs repairs to an asset that makes cheese. Just as long as I am not the person who has to milk it in the mornings, I am happy!
Posted in bargaining, business in Costa Rica, nursery, scythe | No Comments »
May 2nd, 2009 fmorgan
One of the areas I think that baffles foreigners most when living in Costa Rica is what things cost. First of all, you have to deal with a new currency, the colon. On top of that, some things are much cheaper here (for example, we just bought a pineapple for less than 50 cents), and other things, much more expensive (imported goods mainly–an apple is about $1.50).
So, getting prices straight can be challenging, especially when you start talking in millions of colones. We just sold a used ATV for 2 million (about 3600 dollars).
We all want to know ahead of time what it will cost to build something, but the price always ends up being more than quoted. I finally figured out that contractors here give a bid for the best case scenario. Basically, if everything goes perfectly, it will be that price. In a country where even plans for meetings are preceded by “Si Dios quiere…” (If God wills), you can guess how often everything goes perfectly. You would think that the estimates would reflect the normal course of events, but it doesn’t work that way. Since everyone bids for the impossible ideal situation, anyone who gives an accurate estimate will not get the job. Cost overruns are therefore the norm, and you are responsible for adding your own buffer instead of the contractor tacking it on. The odds of you coming out at the original bid and getting to keep that buffer are worse than the lottery, but I guess it’s fun to try. We have seen that if you work the price down to below usual, what you pay in the end will be the same as if you accepted a quote for around the going price, what with one thing and another. It is very possible the lower bid will end up being the most expensive when you redo the rushed job.
Bargaining is practically a national pastime in Costa Rica, if not an art form. Where you live, are you accustomed to hearing an exchange like this in a retail furniture store? “I appeal to your conscience on the price you are asking me to pay.” “My conscience is perfectly clear, thank you, I know our prices are some of the best around.” That last said with a big smile.
It seems everything can be dickered over, and everything is considered for sale. People frequently walk up to our door and ask to buy equipment that we are using in our business. The above-mentioned ATV was in daily use, but somebody asked if we would part with it. It is always good when you are not the one trying to sell, but the other party is trying to buy.
If you come up to a farmer and say, “I like your farm, how much?” expect to be shocked at the price. The custom is to offer it at 3 times a reasonable amount, which is to say, “I don’t really want to sell, but if you really want it…” More than a few farmers have been shocked when the crazy foreigner paid what they asked, and more than a few foreigners have been very upset to discover they paid three times market value.
The best way to buy land is to locate yourself in the area for a while and give yourself a few months to learn what a good price is. Then let it be known that you will buy land for that price. Resist the pressure to go look at properties that are more than your asking price per hectare or square meter. Eventually someone will show up with a property in your price range, because that is what the locals are paying.
After seven years of doing business in Costa Rica, I can see us now on our next visit to the United States trying to appeal to the conscience of some baffled clerk in Home Depot.
Posted in bargaining, business in Costa Rica, buying land, campo, construction, culture, finca, investing | No Comments »