24 Employees Sue Lion Group Over Unilateral Layoffs

3 days ago 11

August 28, 2025 | 04:15 pm

TEMPO.CO, Jakarta - A total of 24 PT Lion Group employees have sued the company's airline management in the Central Jakarta District Court's Industrial Relations Court. The lawsuit pertains to a dispute over unilateral layoffs.

In the Case Tracking Information System, this lawsuit was registered on Tuesday, August 26, 2025, under case number 246/Pdt.Sus-PHI/2025/PN Jkt.Pst. Lion Group employees have engaged Edi Hudiyanto as their legal representative. The initial hearing for this lawsuit is scheduled for Wednesday, September 10, 2025.

The Corporate Communications Strategist at Lion Air Group, Danang Mandala Prihantoro, has not responded to Tempo's confirmation request.

In 2021, PT Lion Group laid off 8,050 of its employees. Corporate Communications Strategist of Lion Air Group, Danang Mandala Prihantoro, explained that the company had to lay off approximately 5,750 to 8,050 of its employees following the reduction in flight capacity due to the impact of the Covid-19 pandemic.

"We announced the reduction in workforce by placing employees on furlough based on the workload in each unit, approximately 25-35 percent of the 23,000 employees. The status is not a layoff," said Danang in a press release on Saturday, July 31, 2021.

He mentioned that while employees are on furlough status, Lion Air Group will endeavor to provide support for living expenses according to the company's ability. Virtual training will be provided to each department during the furlough period. This decision is effective until further notice.

Danang explained that the difficult decision was primarily made to concentrate on effective and efficient measures, aligning with sustaining the business and keeping the company intact, streamlining company operations, reducing expenses, and restructuring the organization amid ongoing operational challenges in the aviation industry due to the lingering impact of the Covid-19 pandemic.

On the other hand, the company has reduced flight capacity to 10-15 percent. The airline continues to provide and offer flight services, prioritizing aspects of safety, security, affordability, and health. "We continue to operate gradually, averaging 10-15 percent of the previous normal capacity (pre-Covid-19 pandemic), which is an average of 1,400 flights per day," he said.

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