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Garuda Strike Averted in 11th Hour

Strike Cancelled after Last-Minute Meeting Between Union and Cabinet Ministers.

(8/13/2005) A threatened three-day strike by Garuda Indonesia's 2,347 member Garuda Flight Attendant Association (IKAGI) scheduled for August 12-14, 2005, was averted when in the early hours of August 12th – the union formally announced the strike plan had been cancelled.

The cancellation of the strike call followed a rushed meeting between IKAGI representatives with three members of the Presidential Cabinet – the Minister for Communication Hatta Radjasa, the Minister for Manpower and Transmigration Fahmi Idris, and the State Minister for State-owned Enterprises Sugiarto. Reportedly the Ministers volunteered to mediate meetings between IKAGI and the Airline’s management.

A union spokesman said the strike was called off after meeting with the Ministers who explained the potentially grave effects the planned strike might have on Garuda. The debt-ridden Airline has an estimated US$820 in unpaid loans and, despite restructuring efforts, continues to experience substantial operating losses.

Garuda has recently contracted the services of an international consulting company specializing in salary and management issues to recommend a more equitable and competitive salary system for their employees.

With the threatened strike averted, both international and domestic Garuda flights on Friday, August 12, 2005, appeared to be operating as usual.