Revealed: The Reasons Behind PT GNI's Plan to Lay Off 1,900 Workers in Morowali

PT Gunbuster Nickel Industry (GNI) has finally spoken out about the processing and refining company’s plan to terminate the employment of 1,900 of its workers. The management of PT GNI stated that the decision was made after a thorough evaluation of the business conditions, the company’s financial capacity, and current operational needs.

Amidst these conditions, two of the company’s three smelters are currently not operating. To maintain business activities and reduce the impact on employees, the company is striving to keep one smelter and its supporting power plant operational as needed. With the company still experiencing losses, reducing operational costs is a crucial step to ensure business continuity. This effort is being made so the company can continue to operate while preserving the opportunity for recovery in the future.

Labour costs are a major component of the company’s operational expenses. With current operations being far more limited, the company needs to adjust the number of workers to match operational requirements and its financial capacity. Before taking this workforce adjustment measure, the company had undertaken various efficiency efforts, including reducing operational costs across various fields, postponing recruitment, reducing overtime, adjusting working hours, and transferring employees.

With a workforce of approximately 6,300 people, while operations are currently focused on only one smelter and its supporting power plant, a workforce adjustment became necessary. The company views this step as a last resort after first considering and implementing various efficiency measures across its operational aspects. The process is estimated to affect around 1,900 employees and will be carried out in stages based on evaluation results and the company’s operational needs. The company emphasised that the entire workforce adjustment process will be carried out in accordance with the provisions of the applicable labour laws and regulations in Indonesia.