queenschamber.org THIS IS QUEENSBOROUGH DOING BUSINESS IN ARGENTINA: BRIDGING THE CULTURAL 4 DIVIDE WHEN THE NORTH MEETS THE SOUTH By Joshua Bienstock In the Argentine Republic, also known as Argentina, 90% of its 43 million population is Catholic. Argentina is the birthplace of Pope Francis, who is the 266th Pope and the first Pope selected from outside of Europe in 100 years. While the official language is Spanish, many people speak English and Italian. Argentina features some of the most unique natural wonders to be found anyplace in the world and is known for its majestic Andes Mountains, Las Glaciares National Park, glacial lakes, natural forests and the breathtaking Iguazu waterfall. The expansive fertile plain known as the Pampas is the traditional grazing ground for Argentina’s world-renowned cattle. Its cosmopolitan capital, Buenos Aires, boasts the world famous Plaza de Mayo. Elegant 19th-century buildings include the Presidential Palace and Casa Rosada, with its famous balcony. Argentina is also the place where the tango was created. You will be judged by your attire and appearance, so be sure to dress elegantly. Business attire is conservative; men should wear a dark suit, white shirt and tie, and women should wear white blouses, dark suits or dresses. It is the height of disrespect to dress in any of the native costumes. Beyond the veneer of clothing, the Argentine businessperson is a tough negotiator who places great emphasis on establishing relationships before getting down to business. When engaging in small talk, soccer, Argentine culture and family are appropriate, while the Falkland Islands and the Peron years are off limits. It is not uncommon for the average Argentine businessperson to put in a very long day, often as late as 10 p.m., and it is not unusual to have a business meeting start at 7 or 8 p.m. Consider the following tips on more effectively negotiating with our Argentine business partners: INTRODUCTIONS AND GREETINGS: A firm but not too long handshake is appropriate. Maintain eye contact while showing a welcoming smile. Use of titles is a must, i.e., Dr., Professor, etc. Business cards are exchanged with less formality (it would be a good idea to have the card printed two-sided in English/Spanish, and you should present the business card Spanish side up). GETTING DOWN TO BUSINESS: Negotiations will be slow, methodical and lengthy; be patient. Several meetings and a great deal of patience will be required to finalize a deal. Be punctual for your meeting, and don’t be surprised when you are kept waiting for lengthy periods (30 minutes is not uncommon). You will be seated by your host at a designated spot; the senior negotiators will sit at the center of the table facing each other. Small talk and relationship building at the commencement of the meeting is critical. During the meeting, maintain a relaxed posture, maintain eye contact and avoid physical gestures. Never go for the “hard sell” and do not play hardball or make ultimatums. Face saving is crucial. When a deal is struck, the contract must be memorialized in writing; you have no deal until the ink is dry on a signed contact. Be prepared to renegotiate the deal in its draft stage. Being mindful of the cultural norms of Argentina and embracing their very methodical and precise style will yield favorable outcomes. Future articles will focus on how to effectively negotiate around the world. Next month we will explore “Doing Business in Turkey.” Future articles will focus on Mexico, Australia and other critical international business partners. There will also be a future article advising our international business partners on the cultural nuances of doing business in the United States. Joshua E. Bienstock is the Director of the Dispute Resolution Institute of New York (“DRINY”), a not for profit educational institute dedicated to promoting conflict resolution at the workplace. He also serves as an Assistant Professor of Business Law at New York Institute of Technology’s School of Management. He has also served as a guest Lecturer at Cornell and CUNY as well as several Chinese Universities on the subject of Negotiations and Conflict Resolution. Contact Information: Joshua E. Bienstock, Esq 917-854-6403 [email protected] ANTIQUATED ‘SCAFFOLD LAW’ PROVES BAD FOR NY BUSINESS By Thomas B. Stebbins Executive Director Lawsuit Reform Alliance of New York There is no greater symbol of New York State’s apparent indifference towards business than Labor Law §240, also known as the “Scaffold Law.” Despite the name, the Scaffold Law does not necessarily have to do with scaffolds. The law, as written, “…imposes liability even on contractors and owners who had nothing to do with the plaintiff’s accident.” -- (Court of Appeals Judge Smith, Feb. 2012). The policy behind the law, written back in 1880, was to protect workers at a time when they had none. Now, in these highly-litigious times, the intent of the law has been distorted and interpreted to impose absolute liability on the property owner. So, for example, if an employee is intoxicated or violating safety standards on a job site, the contractor and property owner are still fully liable for the incident. New York is now the only state in the country that still has this law on the books, and it is one of the most frequently cited sources of litigation. In 2014, nearly one-half (14 out of 30) of the top settlements by dollar were driven by Scaffold Law claims, and a study by researchers at Cornell University found that the Scaffold Law correlates with an additional 677 injuries each year. In addition to litigation costs, a recent study by the Rockefeller Institute for Government also found that the law adds $750 million in costs to public projects every year. This is money that could be spent repairing schools or bridges, and the ramifications on the private sector are likely far greater. With the support of the Queens Chamber of Commerce, we have made significant progress towards reform. We have built a coalition that includes Habitat for Humanity, the School Boards Association and the Conference of Mayors. Over a dozen newspaper editorial boards, including the New York Daily News and the New York Post, have called for reform or repeal of the Scaffold Law, and both Democrats and Republicans in the Senate and Assembly have signed on to legislation that would reform the law to the standard used in every other state. Despite this progress, we still have a long way to go, and we hope that you can support our efforts to reform the costly and long outdated Scaffold Law.
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