Early Retirement Policy, This Is A Touching Message From Garuda Indonesia's Employees Union For The President

Garuda Indonesia aircraft. (Photo: Doc. Garuda Indonesia)

JAKARTA - PT Garuda Indonesia (Persero) reportedly offers early retirement programs to its employees. Garuda's management said the move was taken as an effort to survive and restore the red-plate airline's performance amid the pressures of the COVID-19 pandemic.

This early retirement program will be effective from July 1, 2021. However, starting on May 19, Garuda Indonesia management has opened registration for its employees who are willing to participate in the program.

The Garuda Indonesia Employees' Union (Sekarga) also opened a vote on the offer. Sekarga Daily Chairman Tomy Tampatty said his party was not in a position to support or reject. However, he stressed that Sekarga understands the condition of Garuda Indonesia company which is currently sluggish due to the pandemic.

In relation to the company's restructuring, Tomy said it had submitted a response to Garuda's board of directors. Sekarga reminded, restructuring plans with reduction of workers must be discussed with the employee union. In accordance with the laws and collective labor agreements (PKB) relating to industrial relations.

Tomy stressed that it refuses if the company later performs termination of employment (layoffs) unilaterally. In addition to violating the law and the PKB, Tomy reminded that President Joko Widodo has also banned companies from layoffs unilaterally.

"We understand that the reduction is done by way of early retirement offer, and we expressly reject if the company does layoffs unilaterally because it is illegal and PKB," he said when contacted by VOI, Monday, May 24.

Furthermore, Tomy said, during a cabinet session on June 18, 2020, President Joko Widodo (Jokowi) stated that it prohibits companies from layoffs unilaterally.

To maintain the company's business continuity, Tomy said it supports Garuda's management efforts to renegotiate with lessors and vendors. According to him, this step should be done to the maximum, while making efforts to increase revenue.

According to Tomy, Garuda's revenue can be boosted through the management of cargo potential, cargo warehouse, and charter potential. He said that the management of corporate account potential needs to be more maximal because the market potential is quite large.

Furthermore, Tomy said Sekarga is optimistic that Garuda's performance will crawl up and recover. The aviation business will again grow with the opening of tourist destinations both domestic and international. In addition, there are hajj and umrah, as well as official travel from government and private agencies.

"We remain optimistic that in the future the growth of the aviation business will be stretched again and for the rescue of The National Flag Carrier Assets of PT Garuda Indonesia (Persero) Tbk. We ask for help and support from the Minister of SOEs, Minister of Finance, Commission VI and Commission XI of the House of Representatives, Mr. President Jokowi and all Indonesians," he said.

Early retirement program a tough step for Garuda Indonesia

President Director of Garuda Irfan Setiaputra said that the decision to present this early retirement program is a tough step that must be taken by the company to survive amid uncertainty about when the COVID-19 pandemic will end soon.

"This is a tough step that must be taken by the company. But we must take this option to survive in the midst of uncertainty in the situation of recovery of the performance of the airline industry that has not shown its bright spot during the COVID-19 pandemic," he said in a brief message received by VOI, Friday, May 21.

Furthermore, Irfan said the pandemic situation that is still ongoing until now, requires the company to make adjustments to the supply and demand aspects amid the decrease in operating performance due to a significant decrease in flight traffic.

Currently, said Irfan, the early retirement program is still in the early stages of offering for Garuda Indonesia employees who meet the criteria and requirements for participation in the program. He stressed that the program was offered voluntarily.

"We need to say that this accelerated pension plan is offered voluntarily to employees who meet the criteria. This policy is the best offer that we can strive for employees in the midst of the current pandemic situation, which of course always puts forward the common interests of all parties, in this case, employees and the Company," he said.

Garuda Indonesia, Irfan said, ensures that all rights of employees who will take the program will be fulfilled in accordance with the prevailing laws and regulations and employment agreement policies agreed between employees and the company.

"Through the accelerated pension plan we strive to provide opportunities to employees who want to plan for retirement as best as possible. Especially for those who have other priorities outside of work, as well as other career opportunities outside the company," he said.