By DayakDaily Team
KUCHING, June 8: The Kesatuan Kakitangan Petroliam Nasional Berhad (PETRONAS) Sarawak (KAPENAS Sarawak) has called for transparency and fairness in PETRONAS’s latest workforce adjustment exercise, warning of worsening hardship for local employees facing job insecurity, high living costs and wage disparities.
In a statement today, the union expressed concern over the impact of the oil giant’s “right-sizing” initiative on Sarawakians, especially those stationed in Bintulu and Miri, where living costs continue to climb.
“The oil and gas industry’s workforce are facing challenging environment, with long hours, remote deployments, and job instability.
“Concerns about wage inequalities between local and international employees, as well as growing living costs in key oil and gas hubs such as Miri and Bintulu, add to the financial and emotional strain on workers,” KAPENAS Sarawak said.
The union, which represents more than 2,000 workers across Sarawak, stressed that PETRONAS must adopt a “just transition” approach that protects jobs and communities as the industry shifts towards low-carbon energy.
“KAPENAS Sarawak will focus on several key areas: ensuring fair and transparent processes, protecting rights and welfare, championing reskilling and career development, advocating for equitable compensation and benefits and promoting social inclusion and dialogue.
“The union urges all stakeholders to work together to ensure a progressive, prosperous, and equitable energy industry that prioritises its human capital,” it added.
Registered under the Trade Union Act 1959, KAPENAS Sarawak has been advocating for the rights of oil and gas workers since 1985.
On June 6, PETRONAS is reportedly undertaking a right-sizing exercise affecting approximately 5,000 employees—about 10 per cent of its total workforce—as part of efforts to adapt to increasingly challenging industry conditions, particularly due to falling crude oil prices.
In a separate report, PETRONAS was said that it will implement a general freeze on hiring activities until December 2026, with exceptions made for selected business-critical roles to be assessed on a case-by-case basis.
Nevertheless, Deputy Prime Minister Dato Sri Fadillah Yusof has clarified that the reported plan by PETRONAS to cut more than 5,000 jobs is part of a company-wide reorganisation driven by global economic pressures, and not related to Sarawak’s role as the sole gas aggregator in the State. – DayakDaily
