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Tension arises between Garuda and its pilots union over recruitment
The pilots union deemed the amount as unusual and criticized the move as inconsistent with a push from the government and the company for cost efficiency, urging management to conduct an evaluation to ensure the airline’s business sustainability.
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Green flight: Technicians prepare a Garuda Indonesia plane for a test flight using sustainable aviation fuel on Oct. 27, 2023, at Soekarno-Hatta International Airport in Tangerang, Banten. (Antara/Farhan Arda Nugraha)
T
ensions have risen between flag carrier Garuda Indonesia and its pilots over disputes regarding the new leadership’s hiring policy.
The Garuda Pilot Association (APG), part of Garuda’s employee union, has urged President Prabowo Subianto and State-Owned Enterprises (SOEs) Minister Erick Thohir to conduct a thorough evaluation of the newly appointed management at the airline.
This was following the recent recruitment of several former employees of Lion Air, the country’s largest private airline, a move APG described as one of the main sources of conflict between management and staff.
“We’ve identified several irregularities in the recruitment process that must be reviewed, particularly from a good corporate governance standpoint,” APG vice president Rendy Wiryo Kusumo said on Monday, as quoted by Tempo.
Mufti Anam, lawmaker at House of Representatives Commission VI, which oversees SOEs, raised similar concerns during a meeting in May, citing unverified reports that the new hires were paid from Rp 25 million (US$1,538) to Rp 117 million, adding roughly Rp 1 billion to Garuda’s monthly payroll expenses.
The pilots union deemed the amount as unusual and criticized the move as inconsistent with a push from the government and the company for cost efficiency, urging management to conduct an evaluation to ensure the airline’s business sustainability, particularly in upholding safety standards and delivering top-tier service to customers.
Garuda saw a US$75.9 million net loss in the first three months of this year, its financial statement shows. Last year, it saw a $29.9 million net loss. The airline had just averted bankruptcy after it acquired creditor approval to restructure its liabilities in mid-2022.
