Garuda Indonesia Employee Union Has No Problem With Arrears In Salaries Of Rp327 Billion: We Are Ready To Sacrifice To Protect The Company's Continuity

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

JAKARTA - PT Garuda Indonesia (Persero) Tbk has not paid employee salary allowances of up to 23 million United States (US) dollars or equivalent to Rp327 billion (assuming an exchange rate of Rp14,252 per US dollar) until the end of December 2020. This amount does not include the calculation of arrears in payments. salary from January 2021 to present.

Management explained that from April to November 2020, Garuda Indonesia was forced to delay the payment of income with the amount of deductions carried out in stages based on their position. This was done in response to performance pressures due to the impact of the COVID-19 pandemic.

In response to this, the Daily Chairman of the PT Garuda Indonesia Tbk Employee Union Tomy Tampatty said the Garuda employee union had no problem with the Rp327 billion salary arrears.

"Salary cuts have been made since April 2020. Even the highest cuts have reached 50 percent of salaries. For us, we don't question the salary cuts, because we understand the conditions," he told VOI, Wednesday, June 9.

Furthermore, Tomy said that employees are still concentrating on working well in accordance with the instructions to maintain security and services.

"It doesn't matter. We realize that we also have to reposition, improve and we are also ready to make sacrifices to maintain the continuity of the flight carrier," he said.

As is known, the national airline PT Garuda Indonesia Tbk reported that the company has arrears in employee salaries of 23 million US dollars. This emerged when the state-owned company provided information disclosure to the Indonesia Stock Exchange (IDX).

"The estimated amount of salary benefits currently deferred or unpaid as of December 31 is 23 million US dollars," reads the document released on Wednesday, June 9.

Furthermore, the business entity with the ticker issuer GIAA also revealed that the performance pressures due to the pandemic caused the company to make several adjustments to the remuneration payments for all employee groups.

In detail, the salary delays imposed are 50 percent for directors and commissioners, 30 percent for vice president, captain, first office and flight service manager, and 25 percent for senior managers.

Then, flight attendants (stewardess and flight attendants), experts and managers 20 percent, duty managers and supervisors 15 percent, and staff and students 10 percent.