Garuda fires 233 technicians

Garuda fires 233 technicians

Evi Mariani, The Jakarta Post, Jakarta

Months of dispute between Garuda Indonesia and a number of its
technicians took a turn for the worse on Friday when the national
carrier announced it would dismiss 233 maintenance technicians.

Garuda spokesman Pujobroto, in a statement, said the
technicians had continued to refuse to be transferred to a Garuda
subsidiary as of Thursday's deadline.

"... Garuda Indonesia is currently laying-off employees who
refuse to join GMFAA (PT Garuda Maintenance Facility Aero Asia),"
he said.

Pujobroto said that as Garuda did not have a maintenance unit
any longer as it was shifted to GMFAA, the carrier would not need
the technicians any longer.

The dispute began when Garuda asked its technicians working
for its maintenance unit to move to GMFAA, owned 99 percent by
Garuda.

The move was part of a government 2002-2006 restructuring
masterplan forcing state-owned companies to focus on their core
businesses.

In Garuda case, the carrier has to focus on its flight
services and has to spin-off its other businesses, including the
maintenance unit.

However in May, as many as 641 technicians from Garuda's
Aircraft Technicians Association (ITPU) threatened to strike,
refusing to be transferred. They said that GMFAA was a relatively
new company offering no clear business plans or no certainty for
its employees' future.

Garuda shrugged off the threat, saying it had another 1,300
licensed technicians who could handle the ITPU technicians' job.

The release said the lay-off process would be carried out
until Aug. 31.

"In carrying out the lay-off process, Garuda will give the
employees' rights based on Law No.13/2003 on labor."