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Garuda Indonesia Terminates Contracts of 700 Employees!

Jakarta

PT Garuda Indonesia (Persero) Tbk terminated the contracts of around 700 employees. The contract termination was carried out after the workers had been sent home without salary since last May 2020. The contract termination policy will take effect from November 1, 2020.

“In connection with the information regarding the employment termination made by Garuda Indonesia to a number of employees, we need to convey that basically the policy enforced is the early completion of the employee contract period with the status of contract labor,” said Garuda Indonesia President Director Irfan Everyutra in a release. Officially received by detikcom, Tuesday (27/10/2020).

The contract terminations for hundreds of employees were taken because the airline had long been affected by the decline in demand for flight services due to the COVID-19 pandemic.

Even so, Irfan ensured that his party would still fulfill all the rights of affected employees in accordance with applicable regulations, including prepayment of company obligations for the remaining employee contract period.

“This policy is a difficult decision that we are forced to make after making various rescue efforts to ensure the sustainability of the company amid the challenges of the impact of the COVID-19 pandemic,” he continued.

Since the beginning, said Irfan, the interests of employees have always been the top priority that the airline has always put forward. When other airlines began implementing employee reduction policies, the issuer coded as GIAA shares, he continued, was still trying to optimize strategic steps to ensure improved company performance for the benefit of employees and the future of Garuda Indonesia’s business.

“However, at this point, we have to take this tough decision in the midst of a situation that is still full of uncertainty. We also express our gratitude to the employees affected by this policy, for their dedication and contribution that has been given to the company to date. “he added.

This pandemic, said Irfan, had a long-term impact on company performance. The proof is that until now the company’s condition has not shown significant improvement.

“However, we believe that all the steps and improvement efforts that we will continue to do in the future, can support Garuda Indonesia’s performance recovery efforts so that it can survive the crisis during the pandemic and also strengthen the foundation for the company’s sustainability in the future,” he added.

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