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PT. GARUDA Indonesia Tbk has offered an early retirement program to its employees. This offer was made to restore the performance of the state-owned airline in the midst of the impact of the COVID-19 pandemic.
It is recorded that until now the number of early retirement employees has reached 1,691 people. This program has previously been offered by Garuda Indonesia since 2020. Precisely when there was a decline in the number of passengers due to the impact of COVID-19.
According to the President Director of Garuda Indonesia, Irfan Setiaputra, the early retirement program in phase I was implemented in 2020 and was attended by 591 employees.
“It is with a heavy heart that the company takes steps called rationalization of human resources while still paying attention to employee rights,” Irfan said in a virtual Public Expose presentation, Thursday (8/19).
Meanwhile, in phase II in 2021, he continued, the early retirement program was attended by 1,100 Garuda Indonesia employees. In phase II, program execution will be carried out in stages by taking into account the conditions and capabilities of the company.
“The program is still running in stages and is estimated to require funds of US$30 million per month which will be allocated from the company’s operational funds,” Irfan added.
In addition to this program, Garuda Indonesia has also taken steps to rationalize Human Resaources (HR), which includes accelerated contract settlement for employees with temporary or contract status.
Meanwhile, the company also did not recruit employees during the COVID-19 pandemic, lay off employees with pilot professions in turn, and cut employee salaries at all levels.
“This salary deduction varies, but the range can reach 50% of total income until the company’s condition improves,” he concluded. [sources/photo special]
