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Sarawak Petronas union backs affected staff, demands fairness in looming job cuts

Kapenas Sarawak urges transparency, equitable treatment, and long-term protections for workers as Petronas moves to slash 10% of its workforce

11:20 PM MYT

 

KUALA LUMPUR – The Petroleum Nasional Berhad (Petronas) Employees Union for Sarawak (Kapenas Sarawak) has expressed solidarity with workers affected by the recent workforce restructuring announced by the national oil company.

In a statement, Kapenas Sarawak said it remains committed to ensuring that the exercise is carried out fairly, with due regard for the interests of all impacted employees.

The union stressed that its primary concern lies with the welfare, dignity, and job security of the workers, who form the backbone of the nation’s energy sector.

“Oil and gas workers are currently facing increasingly challenging working conditions, including long hours, remote placements, and job insecurity.

“There are also growing concerns over pay disparities between local and international workers, as well as the rising cost of living in industrial hubs such as Miri and Bintulu, which add both financial and emotional strain,” it said.

Kapenas Sarawak, established in 1985, represents more than 2,000 Sarawakians employed throughout the state, including in Kuching, Sibu, Bintulu, Miri, Limbang and Lawas.

Recently, Petronas announced that it would be reducing its workforce by 10% to cope with ongoing operational challenges, primarily due to the decline in global crude oil prices.

Group president and CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz said the reduction would affect approximately 5,000 employees, with those impacted to be notified in phases throughout next year.

Commenting on the matter, Prime Minister Datuk Seri Anwar Ibrahim said most of those affected were contract-based workers.

Kapenas Sarawak further stated that its main priorities include ensuring a fair and transparent process, protecting workers’ rights and welfare, advocating for career development and empowerment programmes, demanding equitable remuneration and benefits, and promoting inclusivity and open dialogue.

“The union urges all stakeholders to collaborate in building a progressive, prosperous and equitable energy industry that puts people first.

“Kapenas Sarawak also champions a ‘just transition’ towards a low-carbon energy sector – one that prioritises safe employment, supports family wellbeing, and fosters healthy communities, without shifting the cost of industry change onto the workers,” it added. – June 8, 2025

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