Rumors Of Collapsing, Leading To Massive Layoffs, Garuda Indonesia Boss Denies: We Always Put The Interests Of Employees First

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - President Director of PT Garuda Indonesia Irfan Setiaputra denied that he would make a large reduction in employees due to the impact of the pandemic. This objection follows the statement by the Director-General of Industrial Relations and Labor Social Security (PHI-Jamsos) of the Ministry of Manpower, Indah Anggoro Putri, who stated that she would hold a meeting with the management of Air Asia and Garuda Indonesia regarding the threat of bankruptcy and mass layoffs.

"Until now, we have no plans to hold a meeting with the Ministry of Manpower regarding employment issues at Garuda Indonesia," he told VOI, Tuesday, February 1.

He continued, until now, Garuda is in the process of Postponing Debt Payment Obligations (PKPU) which is not a bankruptcy or bankruptcy process but a reconciliation process under the protection of the Commercial Court.

"Garuda's management always puts the interests of employees first in conditions of existing limitations," continued Irfan.

Irfan added that all efforts that have been made by the company so far are also based on agreements with employees such as voluntary early retirement while still referring to applicable regulations.

This is in line with what the Deputy Minister of State-owned Enterprise (BUMN), Kartika Wirjoatmodjo, said during a working meeting with Commission VI of the Indonesian House of Representatives (DPR RI) if the layoffs were carried out through an early retirement program or other programs that were later offered by management.

Previously, the issue of layoffs was raised by the Director-General of Industrial Relations and Labor Social Security (PHI-Jamsos) of the Ministry of Manpower, Indah Anggoro Putri. He said that the management of Garuda and AirAsia will meet the Minister of Manpower regarding the strategic steps that must be taken.

The plan is for a meeting between the Ministry of Manpower, Garuda Indonesia, and AirAsia to be held on Thursday, February 3, 2022.

"Garuda and AirAsia are coordinating with me because they want to go bankrupt. This means that there are potential business problems that have an impact on employment problems, but the Ministry of Manpower is ready to help mediate, such as Pertamina," said Indah to reporters, Monday, January 31.