Indonesia's Garuda Resumes Talks with Pilots

Pesawat Garuda Indonesia di Balikpapan
Sumber :
  • ANTARA / Yudhi Mahatma

VIVAnews – As regards flight compensation and remuneration systems, Garuda Indonesia Airways resumes negotiation with Garuda Pilots Association (APG). In the press release received by VIVAnews, the airline’s party denied the occurrence of deadlock between the management of Garuda and APG.

On August 13, 2011, following the meeting with Minister of SOEs, Mustafa Abubakar, intensive meetings between Garuda Indonesia’s management and the APG’s board were held. The points of agreement was, among others, to hold a meeting between APG’s board and Garuda Indonesia’s management to discuss the issues APG board demanded, which include answer over APG board’s demand that those who were on the July 28, 2011 strike not to be penalized.

The meeting on August 19 approved four issues that would be the subject of further discussion. Then, in the discussion on August 25, 2011, the management presented some alternatives to "build a pilot’s system of compensation and remuneration in order to create a favorable work environment".

At the subsequent meeting on 26 August, APG president Capt. Stephanus said that the development of compensation and remuneration system will take a long time.

He asked for the change from 17 layer-pilot payroll system (which is currently enacted) to 10 layer one. But then Capt. Stephen left the meeting room.

In 2008, according to Garuda’s party, they have raised the pilots’ income to "close to market". Then, in June 2011, Garuda also raised the pilots’ fixed income and production allowance, causing the company to increase the budget by Rp112 billion a year.

If the system from 17 to 10 layers is applied, then according to the management of Garuda, the system does not accommodate professional and compensation development systematically. The company must also make ready for additional fee amounting to Rp68.9 billion a year, bringing the total additional spending on the company to overall pilots’ income increase to Rp180.9 billion a year.

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29 Maret 2024