As A Result Of The COVID-19 Pandemic, Garuda Cuts Employee Salaries

JAKARTA - The state-owned airline (BUMN) airline, PT Garuda Indonesia (Persero), was forced to cut its employee salaries due to the corona virus or COVID-19 pandemic. This is because the pandemic has resulted in a sluggish aviation sector.

One of the causes of the quietness of the aviation sector is the increasing spread of the COVID-19 virus. Moreover, the central government has also appealed to work from home and stay at home. Community movement has also been increasingly restricted by the implementation of large-scale social restrictions (PSBB) policies in several regions.

The President Director of Garuda Indonesia, Irfaniaputra, confirmed that there were cuts in employee salaries. This is an effort to ensure that the company's business sustainability is maintained amidst the pressure from the performance of the world aviation industry caused by the COVID-19 pandemic.

"This salary cut is the best option that can be taken by the Company at this time amidst operational performance challenges that have an overall impact on the business lines of the aviation sector," he said, in a written statement received by VOI, Friday, April 17.

Irfan explained that the salary cuts were carried out proportionally starting from the level of directors to staff. The amount varies, 10 percent for staff levels and 50 percent for directors.

This policy, said Irfan, was taken with a very deep consideration of the current condition of the company. Even so, he is optimistic that his company can survive this unfavorable period for the airline industry.

"We can confirm that this salary cut is a delay. The company will return the accumulated deductions when conditions allow, in line with the Company's future performance," he said.

Meanwhile, said Irfan, the holiday allowance (THR) would still be given. However, the amount paid will be adjusted to the applicable regulations.

For your information, the employee salary deduction is contained in the Garuda Indonesia Circular Number: JKTDZ / SE / 70010/2020 concerning the Take Home Pay Payment Terms Regarding the Covid-19 Pandemic.

In the letter, the amount of salary deduction is applied differently. For the level of directors and commissioners, the amount is deducted from 50 percent of the take home pay.

Meanwhile, the vice president, captain, first office, and flight service manager received a 30 percent cut. For senior managers, the amount of the cut is 25 percent. For flight attendants, experts, and managers by 20 percent.

Then, for duty managers and supervisors, the amount of deduction is 15 percent and staff and students the amount is deducted by 10 percent. The salary cuts will be made starting from April to June.