JAKARTA - PT Garuda Indonesia (Persero) Tbk (GIAA) recorded the number of employees retiring early during the COVID-19 pandemic reached 1,691 people. This program was offered by Garuda in 2020 as an effort to reduce operational costs amidst the declining number of passengers.
Garuda Indonesia President Director Irfan Setiaputra said the early retirement program in phase I, which was implemented in 2020, was attended by 591 employees.
"It is with a heavy heart that the company takes steps called human resource rationalization while still paying attention to employee rights," he said in a virtual press conference, Thursday, August 19.
Then, said Irfan, in phase II in 2021, the early retirement program has been followed by 1,100 Garuda Indonesia employees. The program execution will be carried out in stages by considering the company's conditions and capabilities.
"The program is still ongoing and is estimated to require funds of 30 million US dollars per month," he said.
Irfan said that the budget needed for early retirement was allocated from the company's operational funds. Not only early retirement programs, the company has also completed contract acceleration for employees with non-permanent status.
According to him, the company also did not recruit employees during the COVID-19 pandemic, lay off employees with the pilot profession in turn, and cut employee salaries at all levels.
"This salary deduction varies but the range can reach 50 percent of total income until the company's condition improves," he said.
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