Petronas workforce 'right-sizing' prompts calls for fairness, support measures

Borneo Post

07-06-2025

File photo for illustration purposes
KUCHING (June 7): Deputy Minister in the Sarawak Premier's Department (Labour, Immigration and Project Monitoring) Datuk Gerawat Gala has urged Petroliam Nasional Berhad (Petronas) to consider all alternatives before proceeding with its plan to lay off 5,000 employees.
Speaking to The Borneo Post today, the Mulu assemblyman acknowledged that while Petronas may have its own justifications, retrenchment should be the last resort for any commercial organisation.
'There are other options Petronas can consider, such as offering a voluntary separation scheme (VSS), redeploying staff between departments — for example, from upstream to downstream — implementing temporary salary cuts, or initiating retraining programmes,' he said.
'Only employees who are truly redundant or surplus to requirements should be laid off. Any staff member who feels they have been unfairly dismissed under the guise of redundancy can challenge their termination in the Industrial Court.'
When asked whether the layoffs were related to Sarawak Petroleum Berhad (Petros) being recognised as the state's gas aggregator, Gerawat declined to comment.
However, the Sarawak Oil and Gas Workers Association (SOGWA) said they do not believe the move is a direct result of Petros' appointment, though acknowledged it may trigger a realignment within the industry.
'This change presents an opportunity for Sarawak to assert greater control over its oil and gas sector,' said SOGWA deputy chairman Keroana Johny Weiss.
'But if Sarawakians are among those affected by the layoffs, it will significantly impact local families and communities.
'Many of these workers are highly skilled and experienced professionals who have contributed significantly to the national oil and gas industry,' she stressed.
'Their displacement not only affects livelihoods but also risks a loss of valuable talent from Sarawak.'
'We strongly urge the Sarawak government to step in and provide structured support such as job placement programmes, upskilling initiatives, and inclusion in ongoing and future state led projects,' she said.
'This is vital to safeguard Sarawak's interests, retain our professional resources, and ensure Sarawakians continue to play a key role in managing and developing our state's natural wealth,' she added.
Labour Law Reform Coalition (LLRC) deputy chairman Andrew Lo echoed similar sentiments. While acknowledging that layoffs can be inevitable in the corporate world, he stressed that they must be executed with fairness and transparency.
'What must done is that the layoff must be a last resort, be made in good faith, with full consultation with employees and their unions, adequate compensation and feasible options and assistance to those affected- transition and training for new jobs.'
Voluntary and mutual agreeable exit schemes should be implemented instead of forced retrenchment, he added.
Such schemes should be offered to everyone to minimise coercion and undue pressure on employees, Lo added.
According to Bernama report on Thursday, Petronas President and Chief Executive Officer Tengku Tan Sri Muhammad Taufik Tengku Aziz has said that Petronas would cut about 10 per cent of its workforce as part of the national oil and gas company's 'right-sizing' and restructuring process.
Muhammad Taufik also denied that the state-owned company would exit its business in Canada.
Petronas had previously stated that it needs to 'right-size' its workforce to ensure the company's sustainability in the decades to come.
Petronas has nearly 50,000 employees, according to its website. gerawat gala Keroana Johny Weiss Petronas right size workforce