PT Garuda Indonesia Tbk laid off approximately 800 employees with the status of contract laborers or certain time work agreements. This policy is valid for three months from May 14, 2020.

According to the Director of GIAA Irfan Sebuahutra revealed in his press release, the policy of laying off employees with contract laborers status is an effort of Garuda Indonesia to ensure business continuity given the flight operational conditions are not yet completely normal due to the COVID-19 pandemic.

“The policy is carried out with careful consideration taking into account the interests of employees and the company and is carried out to avoid termination of employment,” Irfan said in a press release.

He explained  the implementation of this policy has been through agreement and two-way discussion between employees and Garuda Indonesia. During that period, employees who were laid off still got employment rights in the form of health insurance and holiday benefits (THR) that had previously been paid.

“We will continue to review and evaluate this temporary policy periodically in line with company conditions and improving flight operations,” he said.

He affirmed that previously, Garuda Indonesia had carried out a number of ongoing efforts to ensure the sustainability of the company’s business. Starting from the renegotiation of aircraft leases, network restructuring, efficiency of production costs, to adjusting the salary of commissioners, directors and staff proportionally, and not giving THR to directors and commissioners. [antaranews]