Layoffs Of 700 Employees At Garuda Indonesia, Managing Director: This Is A Difficult Decision

President Director of Garuda Indonesia, Irfan Everyutra. (Photo: Instagram @setiaputrairfan)

JAKARTA - The national airline, PT Garuda Indonesia (Persero) Tbk, reportedly laid off 700 of its employees. The policy will take effect from November 1, 2020.

The President Director of Garuda Indonesia, Irfaniaputra, said that in connection with the information regarding the employment terminations by Garuda Indonesia for a number of employees, his party said that basically the policy being enforced was the early settlement of the employee contract period with the status of contract labor.

"As many as 700 employees are contract workers who since May 2020 have undergone an unpaid leave policy due to the drop in demand for flight services during the pandemic. Through the early settlement of the contract, Garuda Indonesia ensures that it will fulfill all the rights of employees affected in accordance with applicable regulations, including prepayment of the company's obligations towards the remaining employee contract period, "said Irfan in a written statement received by VOI, Tuesday, October 27.

Irfan said that this policy was a difficult decision that had to be taken after making various rescue efforts to ensure the sustainability of the company amid the challenges of the impact of the COVID-19 pandemic.

"From the start, the interests of employees have always been our top priority. When other airlines began implementing employee reduction policies, we continued to strive to optimize strategic steps to ensure improvements in company performance in the interests of employees and the future of Garuda Indonesia's business. However, at this point, however, We have to make tough decisions in the midst of a situation that is still full of uncertainty, "explained Irfan.

Irfan also expressed his gratitude to the Garuda Indonesia employees who were affected by this policy, for their dedication and contribution to the company to date. Beyond his expectations, this pandemic will have a long-term impact on the company's performance in which Garuda Indonesia has not shown significant improvement to date.

"However, we believe that all steps and improvements that we will continue to do in the future, can support Garuda Indonesia's performance recovery efforts to survive the crisis during the pandemic and also strengthen the foundation for the company's sustainability in the future," concluded Irfan.