Airlines Business Faces Waves of Layoffs

Waves of airline workers' layoffs continued. After PT Garuda Indonesia Tbk (GIAA) offered mass early retirement to its employees, Sriwijaya Air Group offered its employees to resign following the eroded company's liquidity due to the COVID-19 pandemic. "Management needs to decide on strategic measures in employment to accelerate the process of saving the company," said a memo signed by Sriwijaya Air's Human Resources Director, Anthony Raymond Tampubolon, on May 21, 2021.

The memo stated that the resigning employee would receive a severance fee based on the term of service. Employees with a service period of one year or more and less than three years are given a one-month severance salary. Employees with more than three years and less than six years are provided with a two-month severance salary. Meanwhile, employees with more than six years term of service are given a three-month severance salary. The wages for furloughed employees have also been lowered from 25 percent to 10 percent of the basic salary, applied to Sriwijaya Air, NAM Air, and SJNAM Anugerah Mulia employees.