pilot compensation
DESCRIPTION
Midtest Presentation of Compensation Management Course by Vira Cania ArmanTRANSCRIPT
CASE:GARUDA INDONESIA’S PILOT COMPENSATIONVIRA CANIA ARMAN/ 19009068 MARCH, 2012
Outline- Company Profile- Case Background- Legal aspects that being analyze- Analysis - Conclusion & Suggestion- Q&A
Garuda Indonesia
Established in 1949
Fly to Southeast Asia, East Asia, the Middle East, Europe and Australia
4-star airline by Skytrax
Employs 5,808 staff (as of Dec 2010)
Case Background
In July 28, 2011 for about 564 pilots from Garuda Indonesia stop to work in 12-hours (planned to be 24 hours)
remuneration system discrimination towards local and expatriate pilots
expatriate pilots have twice as much amount of salary compares to the locals
Facts- Unbalanced between the Human Capital Plan and Company Expansion
- The meeting to a dead end
Demand
Fairness of rights and duties of local and expat pilots
Management meet with Pilots and further steps can be taken after that
Legal Aspect
UU No. 13 Tahun 2003, Tentang Ketenagakerjaan (Pasal 91 Ayat 1, 92 Ayat 1 &2 , and 137)
UU No. 19 Tahun 2003, Tentang Badan Usaha Milik Negara (Pasal 87)
UU No. 13 Tahun 2003, Ketenagakerjaan
Pengaturan pengupahan yang ditetapkan atas kesepakatan antara pengusaha dan pekerja/buruh atau serikat pekerja/serikat buruh tidak
boleh lebih rendah dari ketentuan pengupahan yang ditetapkan peraturan perundang-undangan yang
berlaku
PASAL 91 AYAT 1
UU No. 13 Tahun 2003, Ketenagakerjaan
PASAL 92 AYAT 2
Pengusaha menyusun struktur dan skala upah dengan memperhatikan golongan, jabatan, masa
kerja, pendidikan, dan kompetensi.
PASAL 92 AYAT 3
Pengusaha melakukan peninjauan upah secara berkala dengan memperhatikan kemampuan
perusahaan dan produktivitas
UU No. 13 Tahun 2003, Ketenagakerjaan
PASAL 137
Mogok kerja sebagai hak dasar pekerja/buruh dan serikat pekerja/serikat buruh dilakukan secara sah,
tertib, dan damai sebagai akibat gagalnya perundingan.
UU No. 19 Tahun 2003,Tentang Badan Usaha Milik Negara
PASAL 87
Karyawan BUMN merupakan pekerja BUMN yang pengangkatan, pemberhentian, kedudukan, hak
dan kewajibannya ditetapkan berdasarkan perjanjian kerja bersama sesuai dengan ketentuan
peraturan perundang-undangan di bidang ketenagakerjaan.
AnalysisThere’s misunderstanding between the local pilots and the management
NO. CATEGORIES LOCAL PILOT EXPATRIATE PILOT
I Salary / month Rp. 47,7 million US$ 8,100 ( Rp. 68,8 million)
2 Flight Allowance Rp. 10 million (with 60-hours assumption of flight)
already include in salary
3 Benefit Cash /month (TTT, THR, BIT, Insentif/Bonus) 3.5 x Salary
Rp. 13,9 million -
4 Housing Allowance - US$ 1,200 (Rp. 10,3 million)
5 Total Monthly Cash Rp. 71 million (if include Benefit Non Cash (Rp. 83,3 million)
Rp. 79,1 million (If include Benefit Non Cash Rp. 81,35 million)
6 Benefit Non Cash/month (Medical Allowance, Personal Accident Assurance, Lost of Flying License, Iuran Pensiun, Jamsostek, Kesehatan Pensiun, Penghargaan Masa Kerja 20th, Penghargaan Pensiun)
Rp. 12,3 million Rp. 2,25 million
7 Total Annual Cash Rp. 860 million (Rp. 999.6 million) Rp. 949.2 million (Rp. 976.2 million)
Comparison to others pilots
CategoriesGaruda
IndonesiaMalaysia Airlines
Singapore Airlines
Pilot US $ 8,875.00US $ 7,920.00
- 11,550.00US $ 7,640.00
- 13,200.00
UU No. 13 Tahun 2003, Pasal 91 Ayat 1
Commonly stated that between the management and the employee should have an agreement upon the compensation and salary.
Action: The management invited that Asosiasion of Garuda’s Pilot (Asosiasi Pilot Garuda) to sit together and discuss the best solution for the problem. They came up with the Surat Keputusan (SK) Nomor JKDI/SKEP/50129/ 11 tentang Pembentukan Tim Desain Remunerasi Penerbang PT Garuda Indonesia Tbk.
UU No.13 Tahun 2003, Pasal 92 Ayat 1
Bus iness Owner p lan the s t ruc tu re and compensation scale by concerned in job position, work-life, education background and competency.
Action:
- Special reward to appreciate pilot loyalty to Garuda Indonesia (e.g. 20th work anniversary)
- Extend the work-life of pilot from 56 years old now extend to 60 years old
UU No. 13 Tahun 2003, Pasal 92 Ayat 2
B u s i n e s s O w n e r s h o u l d r e v i e w t h e compensat ion system per iodical ly with concerned to company’s ability and productivity.
Action:
- they regularly evaluate the compensation to the employees.
- extend the work-life of pilot from 56 years old to 60 years old
- cut the layer of salaries from 17 to 10 layers
UU No. 13 Tahun 2003, Pasal 137
Stop-to-work action is a right that can be done by the employees / employee’s association it is legal, orderly, peaceful as a result if there’s no agreement between two parties.
Action:
-In July 28, 2011 for about 564 pilots from Garuda Indonesia stop to work in 12-hours (planned to be 24 hours)
UU No. 19 Tahun 2003, Pasal 87
Rights and obligations of BUMN employees determined based on an agreement between two parties and employee rule of law.
Action: The management invited that Asosiasion of Garuda’s Pilot (Asosiasi Pilot Garuda) to sit together and discuss the best solution for the problem. They came up with the Surat Keputusan (SK) Nomor JKDI/SKEP/50129/ 11 tentang Pembentukan Tim Desain Remunerasi Penerbang PT Garuda Indonesia Tbk.
Conclusion
UU No. 13 Tahun 2003, Tentang Ketenagakerjaan (Pasal 91 Ayat 1, 92 Ayat 1 &2 , and 137) and UU No. 19 Tahun 2003, Tentang Badan Usaha Milik Negara (Pasal 87), implemented in this case
This assignment give a better understanding about legal aspects in Indonesia
Suggestion
management should hear opinions from the employees
give an explanation long way before if there’s will be a new regulation that employees might refuse
gathering together so it will reduced the gap between the management and the employees
give an explanation to reduce the misunderstanding between the management and the employee
Question & Answer
Thank you