In August 2002 Garuda Indonesia established a subsidiary - PT Garuda Maintenance Facility Aero Asia (GMFAA) to absorb their entire technical crew then working directly for the air carrier.
In a dispute that reached its peak last May with a threatened industrial action by Garuda's technicians, all technicians were asked to sign an agreement accepting reassignment before a July 31, 2003 deadline.
As the deadline passed, some 389 technicians had not filed their transfer forms fuelling a rumor that some technicians would be barred from entering the engineering facility after the deadline date.Garuda officials later denied that rumor, insisting no staff would be banned from their work place.
The spokesman for the recalcitrant technicians insists that their dispute is not about pay or benefits, but about their desire to remain employed by the national carriers, an affiliation viewed by them as more prestigious.
Garuda insists that sufficient technicians have already signed up with the new subsidiary to guarantee uninterrupted flight services.
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