Garuda Indonesia reportedly gives 3 days notice to 181 laid off pilots

National carrier Garuda Indonesia has reportedly laid off 181 pilots as part of its cost-cutting measures, according to CNN Indonesia. The chairperson of the Garuda Pilots Association (APG) Capt. Bintang Muzaini, those impacted include senior pilots with vast flight experience and was not limited to new or junior pilots. He also said that the association has "objections" to Garuda's decision, as the pilots were "eligible to fly" and further support the carrier's operations resumption. 

In the article, Muzaini also explained that the management at Garuda Indonesia informed the pilots last Friday (29 May) that they will have to depart from the company as of 1 June. According to the article, the notice by Garuda is "not in accordance with statutory provisions and employment contracts", as the airline is required to provide minimum 30 days or up to 90 days notice for its staff members. Marketing Interactive has reached out to Garuda Indonesia for clarity on the layoffs. 

Despite the push back from APG, a senior official from the State-Owned Enterprises Ministry, Arya Sinulingga, said in a Jakarta Globe article that the organisation supports Garuda's decision to cut its pilots. He added that the national carrier had reportedly "thought through the consequences for business and management" before deriving at this decision. 

In the same article, Garuda Indonesia recently appointed president director Irfan Setiaputra said the layoffs were "necessary" to balance the airline's finances, and that it will fulfill all its obligations before pilot contracts are terminated. 

Retrenching the pilots comes as the second wave of layoff announcements for Garuda Indonesia. In April 2020, the airline said it will be slashing employee salaries between 10 to 50% until June 2020 as part of its cost-cutting measures due to the COVID-19 impact on travel. According to The Jakarta Post, the airline “struggled to stay afloat” and had to take on such a move to maintain business sustainability.

Setiaputra also said in the article that the pay cuts were only a postponement, and that the airline will explore ways to return the differences as per the company’s financial status. The pay cuts will vary depending on the employee's position in the company. The article stated that boards of directors and commissioners will be subject to a 50% cut, while vice president, captain, first officer and flight service manager will get a 30% pay cut. Meanwhile, flight attendants, experts and managers will receive a 20% reduction, and staff members such as analysts and officers will have salaries cut by 10%. 

However, Garuda Indonesia said then will continue to provide Idul Fitri THR (bonus) to its employees as per government regulations. The national carrier has returned to operate its flights as of 7 May. As part of its regulations, the exemption flights are intended to serve specific passengers such as state officials, private sector workers and state-owned enterprises (SOEs) employees that provide health services, basic necessities, security and defence and vital economic functions, repatriated Indonesian nationals, individuals who need emergency medical care and family members of a deceased individual.​

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