Tensions rise between Garuda and pilots' union over recruitment

The Star

7 days ago

The Garuda Pilot Association has urged President Prabowo Subianto and State-Owned Enterprises Minister Erick Thohir to conduct a thorough evaluation of the newly appointed management at the airline. — The Jakarta Post
JAKARTA: Tensions are rising 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 came after 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 was quoted by Tempo as saying.
Mufti Anam, lawmaker at the 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 25 million rupiah to 117 million rupiah, adding roughly one billion rupiah to Garuda's monthly payroll expenses.
The pilots union deemed the amount as unusual and criticised the move as inconsistent with a push from the government and the company for cost efficiency.
It urged management to conduct an evaluation to ensure the airline's sustainability, in upholding safety standards and delivering top-tier services to customers.
Garuda reported a US$75.9mil net loss in the first three months of this year. Last year, it reported a US$29.9mil net loss.
The airline had just averted bankruptcy after it acquired creditor approval to restructure its liabilities in mid-2022.
The hiring decision also raised eyebrows, as Garuda Indonesia's current chief executive officer (CEO) Wamildan Tsani Panjaitan, appointed by the SOEs ministry last November, is a former CEO of Lion Air.
Beyond the hiring controversy, the union has also flagged poor communication between Garuda's management and employee representatives.
APG accused the management of viewing the union as an adversary rather than a strategic partner, noting that the company even reported several union leaders to the police over public statements.
The union condemned the abrupt halt of automatic payroll deductions for union membership fees, interpreting the move as a sign of bad faith that further strained labour relations. — The Jakarta Post/ANN