Monday, February 25, 2019

Is Costa Rica’s Recope Operating Inefficiently?

During the strike against tax reform last year, Recope was down 60% of employees. Surprisingly, it still managed to distribute fuel. This led to the question of whether the entity could operate permanently with just 40% of its current staff.

The Government plans to modernize the institution. Part of this plan is evaluating the use of personnel.  The Minister of Environment and Energy, Carlos Manuel Rodríguez, believes Recope could easily operate with 40% of personnel. That would save the government a ton of money on the fixed cost to operate.

Of course, this brings to question what will happen to all those employees who are specifically trained for an industry that no longer needs them due to factors including the move toward alternative fuels. How will they make a living? The same happened in the past when logging stopped. Those same loggers later found work in the sustainable tourism industry brought about by the end of logging.

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