Offered Early Retirement, Garuda Indonesia Workers Union: We Continue To Monitor, What Is Important Without Coercion

Photo illustrations (Instagram / @ garudaindonesia)

JAKARTA - The offer of early retirement from Garuda Indonesia's management to its employees received a response from the union. Most recently, the Garuda Employees Union (Sekarga), the Garuda Pilots Association (APG), the Garuda Indonesia Cabin Crew Association (IKGI) opened their voices regarding their future.

In an official statement on Friday, May 28, the Chief Executive of Sekarga, Tomy Tampatty, said there were three important points that became the attitude of the workers. First, the employee ties within the company understand that the restructuring process at Garuda Indonesia is something that cannot be avoided.

"We continue to monitor early retirement offers in accordance with statutory regulations and without coercion," he said.

Two, all Garuda Indonesia employees continue to uphold business continuity in order to provide optimal service for customers while maintaining priority aspects of safety.

Third, fully support the efforts to save Garuda Indonesia as a national airline that is part of the nation's history. For this reason, the trade union encourages rescue steps from the President of the Republic of Indonesia, the DPR, the Minister of BUMN, the Minister of Transportation, the Minister of Finance, and related commissions in the parliament.

"All components in Garuda Indonesia are to be solid in maintaining the sustainability of the company," he said.

For your information, the state-owned airline offers an early retirement program to its employees starting from July 1, 2021. However, since 19 May, Garuda management has opened registration for its employees who are willing to participate in the program earlier.

Meanwhile, Garuda Indonesia was previously reported as being hit by a financial burden of up to Rp70 trillion.

Quoted from Bloomberg, Monday, May 24, Garuda Indonesia President Director Irfaniaputra said that this state-owned airline company is in a tough condition financially. According to him, Garuda Indonesia has a debt of US $ 4.9 billion or around Rp. 70 trillion.

The total debt increased by more than IDR 1 trillion per month in line with the delays in payments made by the company to suppliers.

"Currently, GIAA's cash flow is in the red zone and has equity of minus IDR 41 trillion," said Irfan.